CF Acquisition VI (NASDAQ:CFVI), a blank check company bringing YouTube competitor Rumble to the public markets, gained some healthy ground after reporting the latest Rumble statistics. Over the last six months, CFVI stock is up 16.14%.
According to the latest press release, Rumble saw a 22% increase in monthly active users in Q1 versus Q4, reaching 44.3 million MAUs. It also shattered engagement records during the quarter, with total viewing hours averaging 10.5 billion minutes per month.
Rumble will debut in the second quarter, which will result in a $2.1 billion value for the enterprise. The deal is getting a lot of interest because the platform has attracted conservative-leaning commentators.
Also, Rumble has announced a new partnership with Trump’s social media company, Truth Social. In a separate deal, Trump Media & Technology Group will debut in the coming months and through a reverse merger with special-purpose acquisition company Digital World Acquisition (NASDAQ:DWAC).
Due to the permanent suspension of Trump from Twitter (NYSE:TWTR) and Meta Platforms’ (NASDAQ:FB) Facebook, he no longer has access to roughly 150 million of his followers. Therefore, any platform associated with him is likely to gain traction.
Is CFVI Stock a Buy, Hold or Sell?
Big tech companies have been the subject of many controversies. They’ve been accused of censoring content, data collection and monopolizing the market. According to Pew Research Center, many Americans believe that social media censors political opinions. Hence, there is a market for the company to tap.
CFVI stock will continue gaining steam in the run-up to the merger completion on the back of positive near-term catalysts. Although the SPAC space is considered volatile, CFVI is a good stock in the short run.
When the merger completes, we will see an inevitable drop in the stock price after the expiration of the lock-up period. At that point, you can decide whether to purchase shares again. The market is there for the company to exploit. Rumble has also kept certain moderation rules to avoid becoming too volatile on its platform. However, there is an inherent risk in its business model. Therefore, you should not dedicate a huge segment of your investment portfolio to such a risky enterprise.
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.
