CFVI Stock Has Too Many Headwinds After a Spate of Bad News

Does it make sense to invest in CFVI Acquisition Corp. (NASDAQ:CFVI) stock prior to bringing video platform Rumble public sometime in the second quarter of 2022?

Person holding cellphone with logo of Canadian video platform company Rumble Inc. on screen in front of business webpage. CFVI
Source: T. Schneider / Shutterstock.com

On the one hand, it’s fairly obvious that Rumble is gaining steam. The company creates “technologies that are immune to cancel culture.” In recent weeks that has the company mentioned in the same breath as some of the biggest names in media.

That’s interesting to be sure. But the greater question is whether Rumble can ultimately create a platform that rivals the utility of YouTube, but which caters to a more conservative viewer base. The company is central to the ongoing polarization of all things in the United States. And that just might make it an incredibly valuable stock in the future.

Or it could be a complete bust. Either way, let’s take a deeper look at Rumble, and by extension, CVFI stock.

CFVI Stock is Betting Big

CFVI Acquisition Corp. is betting big that Rumble has a product and service that is only going to grow moving forward. Many readers will be familiar with Rumble for its associations to some of the biggest names on the right. A bullish thesis in favor of Rumble is that it has what it takes to draw conservative firms onto its content distribution platform in significant numbers.

The news there appears mixed right now. On the one hand, Rumble made waves for its association with both former President Donald Trump and Trump Media & Technology Group. Trump is already on Rumble and his Trump Media Group, under  Digital World Acquisition Group (NASDAQ:DWAC) utilizes Rumble for video distribution.

That’s good news for CFVI and Rumble, but at the same time it isn’t an exclusive deal. DWAC could utilize other platforms as well. So if Truth Social ultimately utilizes Rumble for the majority of its content distribution that could be a major strength. That of course is predicated on the assumed success of Truth Social which has just launched. Truth Social could rise or fall, and Rumble could become a major distributor for a long period of time. But it’s still very early in the game.

Investors at least have reason to remain optimistic in relation to Trump, Rumble, and CFVI. The same is not true of another conservative voice in Joe Rogan.

Joe Rogan Isn’t on Rumble

CFVI stock had a chance to rise precipitously in early February. It offered Joe Rogan a $100 million deal to move his popular “Joe Rogan Experience” to the platform. Rogan had been embattled with his podcast host Spotify which already signed him to a deal worth more than $100 million.

Rogan was facing backlash for use of the N-word in previous podcasts and allegations of disseminating Covid-19 misinformation as well. Those allegations led to broad speculations that Rogan would find himself canceled by Spotify.

Yet Spotify has stuck with Rogan. And Rogan ultimately decided not to take up Rumble on its offer to bring the “Joe Rogan Experience” to its platform.

That’s a blow to CFVI stock and Rumble as a company. If Rogan had accepted, then Rumble would have immediately become a much more potent force countering YouTube.

Rumble Growth and the Future of CFVI Stock

It would be premature to count Rumble out based on the fact that it couldn’t entice Joe Rogan to its platform, though.

The numbers indicate that Rumble is seeing strong growth: “From December 2021 to January 2022, the company saw 19% growth on monthly active users, 27% growth on minutes watched, and 14% growth on hours of uploaded video per day.”

But it’s difficult to ascertain much about the future based on those numbers.

I can’t see why investors have much reason to place their capital behind CFVI stock right now for that reason. Truth Social isn’t off to a strong start. Joe Rogan isn’t coming to Rumble. There are just too many “ifs” right now to be bullish on CFVI stock.

Rumble’s future is far from certain.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/cfvi-stock-has-too-many-headwinds-after-a-spate-of-bad-news/.

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