Without a Trump Card, CF Acquisition Corp VI Is Risky

While special purpose acquisition companies look to be wearing out their welcome after a mercurial reintroduction of sorts in recent years, CF Acquisition Corp VI (NASDAQ:CFVI) stock is on paper an intriguing proposition.

The Rumble (CFVI) platform displayed on a smartphone screen.
Source: Tada Images / Shutterstock.com

Looking to merge with video hosting service Rumble, CFVI stock could experience a rally based on newfound interest toward censorship-free social media platforms.

In that sense, CF Acquisition reminds prospective participants of Digital World Acquisition Corp (NASDAQ:DWAC), the so-called Trump SPAC that will take Trump Media & Technology Group public via a reverse merger. Underlining this arrangement is Truth Social, a platform where conservatives can voice certain controversial opinions without fear of reprisal.

And by reprisal, I mean de-platforming, the very issue that helped inspire Truth Social. Similarly, though Rumble didn’t start life as a scandal hub, its censorship-free (or to put it more accurately censorship-resistant) service could draw positive attention to CFVI stock.

These days, it’s getting tougher for people to broadcast opinions that don’t align with the mainstream ethos, whether that be politics, vaccinations, inter-community relations and so on. Conservatives complain that if you broach certain taboo subjects – or subjects society regards as taboo – you could be done.

Should your income depend on your social media presence, censorship from mainstream platforms could be tantamount to economic warfare. Therefore, the idea of participating in a viable alternative draws eyeballs to CFVI stock.

Certainly, when you consider the passionate base that many right-wing personalities command, it’s difficult not to perceive Rumble as the next big think in alternative media.

Don’t take my word for it. According to the Wall Street Journal, venture capitalist Peter Thiel and “Hillbilly Elegy” author J.D. Vance have jumped aboard the platform with their investment dollars.

Should you do the same?

Can CFVI Stock Prosper Without The Donald?

Naturally, the future prospect of CFVI stock will link back to DWAC and Truth Social. As you probably know, the Trump SPAC has been absolutely killing it. Despite severe volatility recently, DWAC is still up 38% on a year-to-date basis. Over the same frame, CFVI is up only 4%. That’s a massive differential.

Still, both companies share similar purposes in providing a venue where people can voice – within reason – issues that matter to them. Both platforms don’t shy away from conservative content creators; you might say they both encourage outcasts in signing up and providing an alternate safe space, if you will.

Thus, the two services are in many ways connected at the hip. But the difference between CFVI stock and DWAC is the Trump factor. The underlying platform for the former simply doesn’t have the direct association with the controversial president.

As a Bloomberg report mentioned in February of this year, Trump fans have been responsible for contributing to DWAC’s success. Essentially, owning DWAC is a badge of honor for Trump supporters. You’re just not getting that kind of sentiment with CFVI stock.

Just as significantly, it’s not entirely clear what substantive solution Rumble provides. Again, I totally understand the attraction of a censorship-resistant platform. But big technology firms’ platforms aren’t exactly happy-go-lucky places either.

You know this as a fact. For instance, if you want to drop F-bombs on Twitter (NYSE:TWTR), you’re free to do so. Heck, if you want to “expose” yourself through your tweets, you’re also free to do that with certain reasonable restrictions.

About the only things you can’t do is broadcasting universally condemned content, such as bigoted material or illegal videos or literature. Outside of well-understood restrictions, you’re largely free to let loose through big tech mediums.

Possible Risk of Redundancy

Given the crazy world that we’re living in, it’s quite possible that Rumble could attract people who are tired of mainstream media biases. I get that. It’s a powerful catalyst. But it’s also being done through Truth Social, which begs the question, is CFVI stock a redundant investment?

As conservatives age out, my thinking is that it’s going to be harder and harder to find a consumer base that would cater to right wing or otherwise controversial content. We live in a society where we cannot say this word or that word and presumably, a great many folks don’t seem to have a problem with it. Censoring deliberately ghoulish or provocative content carries a near-universal appeal.

So, based on the realities of the broader social ethos, I’m not necessarily jumping for excitement for CFVI stock. But again, the world is getting weird enough that there might be something here. Certainly, I will be revisiting the topic soon.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.


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