Rumble’s volatile season isn’t over yet. The video-sharing platform has garnered a significant following among conservative users and commentators. Today, the company reported a new record for monthly active users, demonstrating noticeable growth. According to a statement released by the company, Rumble’s user base has reached “an average of 44 million average monthly active users (MAUs) and representing a 76 percent increase compared to the second quarter of 2021.” That sounds like excellent news for CF Acquisition Corp VI (NASDAQ:CFVI) as it prepares to take Rumble public. But CFVI stock has been highly turbulent today, raising some questions about the soon-to-be- merged company’s future.
Let’s take a look at the bigger picture regarding CFVI stock and Rumble.
What’s Happening With CFVI Stock
CFVI stock rose 0.58% as markets opened today. It’s easy to see why such a positive report from Rumble would cause shares to rise. But just as quickly, CFVI began to slip and within the hour and had fallen more than 1%. As of this writing, it is up 0.2% for the day after multiple small rallies and another decline. After this type of volatility, it is impossible to predict how CFVI stock will perform throughout the afternoon, but its current patterns do not hint at a rebound.
Investors should note that the MAU increase isn’t Rumble’s only new record. The company also reported that it has topped its previous quarterly record for content uploads. Specifically, Rumble users uploaded 8,948 video hours per day in Q2, “representing 283 percent growth versus the same quarter last year.” The platform also recorded a strong growth trajectory for user engagement, “with Rumble users watching an average of 8.1 billion minutes per month (MWPM), an increase of 62 percent from the second quarter of 2021.”
What It Means
All this sounds like excellent news that bodes well for Rumble’s future. So why has CFVI stock been so turbulent? As InvestorPlace contributor Dana Blankenhorn notes, it is likely because Rumble is still struggling to “prove itself to a skeptical market.”
This is primarily due to two factors. Firstly, Cantor Fitzgerland, the parent company of CFVI, has a record that is working against it. As InvestorPlace contributor Will Ashworth reported, it has launched four special purpose acquisition companies (SPACs) that have formed disastrous mergers. In March 2022, he reported that “the worst part about Cantor Fitzgerald’s record is that the stocks of the four that have found merger partners are down an average of 62%.”
Secondly, it’s likely hard for markets to trust the so-called Trump trades right now. Rumble isn’t directly linked to former President Donald Trump, but CFVI stock often moves in solidarity with Digital World Acquisition Corp (NASDAQ:DWAC), the SPAC partner of the Trump Media & Technology Group. DWAC stock has lost 63% over the past six months, even as the former president continues to use Truth Social.
CFVI doesn’t always move with DWAC, but this isn’t a great time for any of the Trump trades. DWAC is struggling as Trump’s legal woes persist. Where it goes, the smaller companies will follow. Rumble has reported significant growth, but it will need to demonstrate to Wall Street that it is more than a reactionary product of the Trump era if it wants to grow.
On the date of publication, Samuel O’Brient 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.
