BRCC Stock Alert: What Is Going on as Red-Hot Black Rifle Coffee Debuts?

Editor’s note: This article was updated on Feb. 10 to correct the spelling of Evan Hafer’s name. 

A new stock makes its trading debut today following the successful closing of its special purpose acquisition company (SPAC) merger. Black Riffle Coffee (NYSE:BRCC), a veteran-owned company with a controversial track record in the current political landscape, is officially trading on the New York Stock Exchange. Today, its blank-check partner SilverBox Engaged Merger Corp. I confirmed that the business combination has been successful. Company founder Evan Hafer and co-CEO Tom Davin rang the opening bell at the NYSE this morning.

An exterior of a Black Rifle Coffee Company (SBEA) store.
Source: YuniqueB / Shutterstock.com

What’s Happening With BRCC Stock

This new edition to the market has been trading for less than two hours at the time of writing, but so far, it has traded well. As of this writing, it is up more than 23%. While it has declined slightly from its earlier peak, this is still an impressive performance for such a new stock. Still, the questions remain: Will its growth continue? And for how long?

News of the impending merger sent Silverbox’s stock soaring when Black Rifle announced its plans to go public. Investors were quick to speculate that it might be the next Digital World Acquisition Corp. (NASDAQ:DWAC), a company with ties to former President Donald Trump. At the time, Wall Street was still riding the wave generated by the original Trump trade’s overnight breakout. SBEA stock didn’t see gains of that magnitude, but investors are still eyeing it with hope.

Why It Matters

Known for its focus on hiring military veterans, Black Rifle Coffee’s brand is its values. In fact, it’s almost as focused on branding as it is on coffee. The company website features a wide array of non-coffee products from mugs to clothing, often featuring either pro-America or anti-hipster themes. It has been hailed as the Starbucks (NASDAQ:SBUX) of the American right wing. And according to reports, political polarization has been an excellent business model.

InvestorPlace contributor David Moadel recently speculated that Starbucks’ success should make BRCC an attractive play for investors. As he noted, “Starbucks doesn’t just offer a cup of coffee. It also provides a brand and an attitude.”

If that’s true, Moadel is certainly correct in his assessment that BRCC could be a breakout stock for the year. A brand and an attitude are two things that Black Rifle Coffee absolutely brings to the table. Some consumers may be offended by the company’s focus on guns, but Black Rifle Coffee does just fine without those customers. The company is rapidly expanding. One late 2021 report indicated that Black Rifle Coffee had the potential to open as many as 1,300 stores across the country.

What It Means for BRCC Stock

BRCC stock doesn’t just have the advantage of a growing company brand and a dedicated consumer base, though. It is going public at a time when interest in the Trump trades is quite high and continues to rise. Additionally, many eyes are on the launch of Truth Social, the former president’s social media platform. While it’s been delayed, the anticipation continues to help DWAC stock rise. This type of momentum often carries over to other stocks with ties to Trump. While BRCC stock isn’t directly linked to Trump, it was founded by people who support him.

Black Rifle Coffee has shined a light on just how effective political polarization can be in brand development. For investors looking for either coffee stocks or Trump trade plays, BRCC stock is absolutely worth watching as it adjusts to its new status as a publicly traded company.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/02/brcc-stock-alert-what-is-going-on-as-red-hot-black-rifle-coffee-debuts/.

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