Today, CF Acquisition Corp VI (NASDAQ:CFVI) is rising on a new partnership with former President Donald Trump’s social media platform. This morning, Rumble announced that both Truth Social’s website and mobile app have been successfully migrated to its cloud infrastructure. This comes on the heels of a difficult month for both companies; Trump Media & Technology Group (TMTG) — the company behind Truth Social — is set to go public with Digital World Acquisition (NASDAQ:DWAC) but has struggled to gain momentum. Both CFVI stock and DWAC are trading in the green today. However, this news doesn’t mean their growth is sustainable.
Despite an initial spike this morning, CFVI stock has displayed turbulent performance. Within the first hour of trading, it fell about 0.90% and has made multiple attempts at rallying since. As of this writing. CFVI is up about 3% for the day, but if its early performance is any indication, it will continue to bounce.
Meanwhile, DWAC stock is having a better time. Still, the blank-check partner of TMTG has seen a difficult season. Although DWAC is currently up 10% for the day, its surge this morning shouldn’t be taken as a cause for celebration.
What’s Happening with CFVI Stock?
Today’s announcement is the first positive catalyst that DWAC stock has seen since its February launch. However, that doesn’t mean it signals a turnaround. Yes, today’s performance is promising, but the fact that DWAC is far outpacing CFVI should compel investors to take a step back and examine the bigger picture. Let’s break it down.
While it has been a tough season for both companies, DWAC has fallen more than 40% in the last month. In contrast, CVFI stock is only down by roughly 5%. These companies are frequently lumped in together as the two big “Trump trades,” but that doesn’t mean their utility is the same. One partnered with a platform that has demonstrated growth potential. The other did not. Rumble saw its monthly active user count increase by 22% in the first quarter; Truth Social has watched downloads plunge by 93% since launch.
There’s another key reason why the surge in DWAC stock isn’t sustainable; the new partnership doesn’t address the root of Truth’s issues. In a statement, Rumble claims the migration “will enable the Truth Social platform to scale significantly on a new and cancel-culture-free cloud platform.” But the platform’s problems do not stem from a lack of cloud-based infrastructure. Rather, they’re driven by a lack of interest in the platform — a platform that even Trump himself has abandoned. Rumble’s behind-the-scenes technology won’t actually help Truth Social make progress on that front.
What It Means
All told, regardless of today’s performance, DWAC stock is still one to avoid. Now, investors who jumped that ship should focus on CFVI stock. As InvestorPlace contributor Faizan Farooque notes, Rumble is simply “more of a viable social media platform” than Truth Social.
In reality, Rumble’s success is also likely part of why Truth Social has fallen so far. The saga of the two platforms illustrates that their right-wing consumer marketplace is a zero sum game. As of now, Rumble is winning by a substantial margin.
Truth Social won’t be harmed by this new partnership. But that doesn’t mean it will be helped, either. DWAC stock has fallen too far to come back, unless it sees a miracle.
On the date of publication, Samuel O’Brient did not hold (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.
