Investors may want to keep an eye on special purpose acquisition company (SPAC), CF Acquisition Corp. VI (NASDAQ: CFVI). For the last few weeks, shares of CFVI stock have been consolidating around $11.30 a share. However, as it nears the close of its merger with Rumble — a conservative social media, platform — the stock could see higher highs.
After all, Rumble has big opportunity. While my political opinion means nothing here, a good number of Americans are fed up with YouTube and Meta Platforms (NASDAQ: FB). In fact, nearly 75% of Americans say these sites are censoring political posts, as noted by TheWrap.com contributor Sean Burch. So, it comes as no shock that Rumble is gaining traction — and a lot of it. For example, its user base hit a new record of 41 million monthly active users in the first quarter of 2022. That is 22% growth quarter-over-quarter.
Even better, Rumble is setting user engagement records. In the first quarter of 2022, Rumble users watched about 10.5 billion minutes per month. They also uploaded 6,158 hours of video per day in the quarter. “When you consider the limited capital Rumble has raised to date, I believe this kind of growth is unlike anything we’ve seen before,” stated Rumble Chief Executive Officer Chris Pavlovski. “Other technology companies spend hundreds of millions of dollars to achieve this amount of market share; Rumble has done it with a fraction of their capital.”
Sure, Elon Musk just took a major stake in Twitter (NASDAQ: TWTR), which could be a major competitor. But if you have millions of Americans looking for more balanced social media, you can either change or get left out in the cold. The companies that have to be most concerned about this massive desire for balance are Meta Platforms and YouTube. Unless they change their algorithms, Rumble could seize a chunk of their audience.
In fact, according to InvestorPlace contributor Larry Ramer, “Rumble estimates that if its audience becomes 18% as large as that of YouTube and its average revenue per user is 57%, as large as YouTube, its annual revenue would come in at $1.4 billion. I believe that by attracting star contributors, along with many American conservative and maverick consumers, the company can attain those metrics within two or three years.”
In short, Rumble could be set to rumble — and create a big opportunity for CFVI stock in the near-term.
On the date of publication, Ian Cooper 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.