Let’s be honest. Some folks who bought shares of special purpose acquisition company (SPAC) CF Acquisition Corp. VI (NASDAQ:CFVI) were hoping that CFVI stock would behave like the somewhat similar Digital World Acquisition (NASDAQ:DWAC) stock did.
Earlier in 2021, Digital World Acquisition garnered investors’ attention when former President Donald Trump announced that it would serve as the blank-check partner for his new social media venture, Truth Social.
Consequently, DWAC stock rocketed from $10 to $175 before eventually settling near $50. Meanwhile, CF Acquisition Corp. VI plans to take conservative-leaning Canadian YouTube rival Rumble public through a similar SPAC merger deal.
In other words, it might be tempting to view CF Acquisition Corp. VI and Rumble as the “next DWAC.” As we’ll discuss momentary, however, the initial hype-fueled impulse has passed. Still, a recent share-price pullback might present an opportunity to re-load for the next rally.
A Closer Look at CFVI Stock
It’s a tale you may have heard many times before: a much-touted SPAC stock starts at $10, then shoots higher before disappointingly returning to $10.
It appears that this story arc might apply to CFVI stock, which spent many months clinging to the $10 area before soaring to $15.48 in early December.
Of course, that run-up was precipitated by the Rumble reverse merger announcement. The 50%+ share-price gain was impressive, but a DWAC-like moon shot evidently wasn’t in the cards.
Checking back in on 2021’s final day, CFVI stock had already retraced back to $10 and change. Hopefully, traders who bought the stock in the $15 area learned a valuable lesson about the hazards of chasing.
Meanwhile, it’s possible that a return to $10 will provide a strong support level as well as an attractive buy price. Just don’t go crazy and load up on the shares, as support levels can break and the only true bottom in the world of stocks is zero.
Canceling Cancel Culture
I must admit, I was inspired by InvestorPlace contributor Alex Sirois’s recent take on CF Acquisition Corp. VI and Rumble.
Sirois’s angle is that CFVI stock should appeal to investors seeking to capitalize on the backlash against cancel culture. Really, then, it’s not about conservative versus liberal, but about free speech and constitutional rights.
This line of thought empowers people to consider investing in Rumble regardless of their political leanings. Plus, it steers the focus away from obsessing over finding the “next DWAC.”
Don’t get me wrong, for the most part, Rumble will still be a voice for conservative viewpoints. Let’s not forget that, on Dec. 14, Trump Media & Technology Group (TMTG) announced its partnership with Rumble.
Thus, Rumble is partnering with TMTG to deliver video and streaming for Truth Social, and to deliver TMTG’s on-demand subscription video service, TMTG+.
While not everyone will see eye-to-eye with Rumble’s largely conservative perspective, prospective investors can still respect the company’s commitment to First Amendment rights.
Allegedly, those two companies attempted to censor Dan Bongino, the host of a nationally syndicated radio show and a Fox News television program.
Apparently, Tremor International had attempted to censor Bongino by removing advertisements from his websites and Rumble’s hosted video player. Also reportedly, Tremor International cited vague complaints from unnamed “partners” based on “fake covid information.”
Clearly, Rumble CEO Chris Pavlovski wasn’t going to accept what he viewed as a suppression of free speech and open discussion.
“Tremor’s attempt to censor Dan Bongino violated Rumble’s core principles… We won’t tolerate politicized attempts to cancel creators,” Pavlovski clarified.
The Bottom Line on CFVI Stock
Sirois’s take on CF Acquisition Corp. VI and Rumble is clear-minded and sensible. There’s no need to obsess over politics when cancel culture is the real issue here.
At the same time, it’s pointless to think of CFVI stock as a lottery ticket like DWAC stock. They’re different companies representing entirely separate businesses, even if there are some similarities.
So, just think of CF Acquisition Corp. VI and Rumble as soldiers in the ongoing battle against excessive censorship. If you can put your politics aside, then there may just be a promising, First Amendment-backed investment opportunity here.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.