Markets may be losing momentum as the year winds down, but for some companies, things are still heating up. December sensation CF Acquisition Corp VI (NASDAQ:CFVI) is continuing to ride its momentum. Indeed, since the month began, CFVI stock has been driven upward by its ties to former President Donald Trump.
As can be expected, CFVI stock tends to move in sympathy with other “Trump trades,” like Digital World Acquisition Corp. (NASDAQ:DWAC), the blank-check company that became famous when it agreed to take Trump Media & Technology Group (TMTG) public. Today, there is not one but two important stories that are helping drive up both stocks.
What’s Happening With CFVI Stock
Both “Trump trades” are off to a good start today following a difficult week. As of this writing, CFVI stock is up more than 6% within the first hour of trading. Additionally, DWAC is up 1.21%. While it’s still early in the day, neither stock shows signs of slowing down. Last week both companies faced some turbulence following the news that the Securities and Exchange Commission (SEC) was conducting a probe into DWAC’s ties to Trump prior to the merger announcement. However, since then, both seem to have recovered, in no small part thanks to the stories of the day.
What are these stories? First, CFVI’s partner Rumble has agreed to stream Truth Social, the social media network around which TMTG was created. While many suspected that this development was inevitable, this morning brought its confirmation.
Yesterday brought the news that Rumble was furthering this mission of becoming the YouTube of the American right-wing by cutting ties with both Unruly Group and Tremor International (NASDAQ:TRMR), two companies that had been accused of censoring firebrand conservative personality Dan Bongino.
Why It Matters
When evaluating what these recent developments mean for the future of CFVI stock, as well as DWAC, it is important to take a macro look at both companies. Since Trump was kicked off of both Meta (NASDAQ:FB) and Twitter (NYSE:TWTR) in 2020 for inciting chaos and violence on Jan. 6, he has been seeking platforms that will help him broadcast his message to his followers. In Rumble, he has found exactly that. This makes the Canadian video-streaming service a key component of the empire he is trying to build, cementing its place among companies we will be hearing about throughout the coming year.
While we don’t know for sure what the future will look like for Trump, we do know that Truth Social is coming in some form. While the developing platform has missed product rollout deadlines, it appears to be on track to launch at some point in 2022, likely on the earlier side as Trump will be reliant on it to build the momentum he needs for his 2024 presidential campaign. When it does launch, it will mean a significant bump for both CFVI stock and DWAC.
What It Means
There’s still some uncertainty that we should also account for while dealing with the Trump trades. Indeed, it’s no secret that Trump is constantly embroiled in legal troubles, which could delay Truth Social’s launch. That said, none of the controversy we’ve seen so far has held either stock back significantly.
The way it looks from here, 2022 will be a year of gains for both stocks, though their sustainability is still up for debate. All we can do is watch and wait as the year takes shape. CFVI stock is certainly worth watching as the company continues making moves.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.