CFVI Stock: Let’s Get Ready to Rumble

CF Acquisition Corp. VI (NASDAQ:CFVI), a blank check company or special purpose acquisition company (SPAC), is set to complete a reverse merger with right-leaning streaming platform Rumble. Although the two transactions are separate, CFVI stock is getting a tremendous boost from the impending tie-up of Digital World Acquisition (NASDAQ:DWAC) and the Trump Media & Technology Group. Due to the former President’s larger-than-life personality, the spotlight shines on both of these stocks.

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

Rumble is an online video platform gaining popularity with the rise of social media and online content consumption. It is a right-leaning platform, and its users are mostly conservatives.

It was recently in the news for attempting to court Joe Rogan through a $100 million offer. The company still wants America’s most famous podcaster to shift his show, “The Joe Rogan Experience,” to the Rumble platform from Spotify (NYSE:SPOT). InvestorPlace writer William White covered the news from multiple angles. So, check out that article to get granular about this development.

About Rumble and What CFVI Stock Is Getting Into

Chris Pavlovski created Rumble to provide new and different content from what YouTube provides with their algorithm. The creators were given the freedom to create whatever they wanted without being limited by YouTube’s algorithm or policies.

In the current climate, more and more companies are looking to cater to a conservative clientele. These businesses include fast-food chains, coffee shops, and similar brands that provide products meant for customers of a specific kind. For example, Black Rifle Coffee (NYSE:BRCC), a pro-law enforcement coffee seller, is generating positive momentum.

Therefore, companies like Rumble have an opportunity to generate a healthy return if they can wrest market share from YouTube. There was a lot of demand for a YouTube alternative, but no company has successfully created it yet. Rumble wants to be that company.

‘Fighting Censorship’

Rumble is an example of how digital companies are addressing a demand for creating content with limited censorship. Rumble aims to provide a safe space for creators and viewers alike.

There is a debate raging in the media and among Americans around Big Tech’s content censorship. This debate has been fueled by accusations that the algorithms of large tech companies, such as Meta (NASDAQ:FB) and Google are biased against conservative voices.

Against this backdrop, it is not surprising Rumble is doing well. By the third quarter of 2021, monthly active user numbers topped 36 million for the video platform. At the same time, engagement in minutes watched per month jumped 60% more viewers sequentially.

And the number of users keeps on growing this year. Monthly active users (MAU), a key metric for social media platforms, jumped to 39 million in January 2022. Even more impressive is that users watched 10.8 billion minutes on the platform in January. That’s a lot of people, and that traffic also generated a lot of impressions, too.

Wresting Market Share From YouTube

YouTube is the biggest online video platform, and it is also the most popular one. It has more than one billion active monthly users, who watch over a billion hours of videos every day.

It has been one of the most popular and successful digital marketing tools for advertisers. This is because it helps them reach a huge number of people at once and connects with their audience personally.

However, recently, there have been issues creeping up regarding censorship. The removal of the dislike button and the demonetization of certain channels lead certain content creators to seek out different platforms.

More content creators are opening their accounts on Rumble due to the site’s growing popularity. The more users there are and the newer features that come out, the more attractive it is for all content creators that want a change of pace from YouTube.

Even though uploading on every platform might seem like an enormous amount of work, It is also true that there is a lot of potential for earning money and building your audience. Users will still create exclusive content.

However, by using multiple platforms for content marketing, content creators can provide unbiased opinions instead of skewering them unfairly. Getting de-platformed is a real issue if YouTube is your bread and butter. Therefore, we might see a scenario where content creators use their Rumble account to give slightly contentious views, which they cannot on YouTube.

It’s also worth noting that the Rumble platform also has certain protocols that creators have to abide by. So, it isn’t a complete “wild west” so to speak.

How to Play CFVI Stock

First and foremost, CFVI is a SPAC. Therefore, it will have to go through the standard SPAC process. In the runup to the merger, we will have approvals, the merger closure, etcetera. These are near-term catalysts that will push CFVI stock higher. These events have little to do with the fundamentals of the business.

However, once the dust settles on the merger, analysts and investors can reevaluate the financials and come to a more nuanced conclusion. Before that, you can invest and hold the stock until any near-term catalysts occur. Once that happens, CFVI stock will pop, and you can take advantage.

In the longer run, Rumble seems an interesting prospect. It can create a niche audience by offering a distinct product focusing more on a certain audience.

On the publication date, Faizan Farooque 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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/cfvi-stock-lets-get-ready-to-rumble/.

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