Should you buy CFVI stock?
Rumble, a Canadian company seeking to rival YouTube, has announced plans to go public by way of a SPAC (special purpose acquisition company) merger with CF Acquisition Corp. VI (NASDAQ: CFVI). If you are looking for stocks with good returns, CF Acquisition Corp VI can be a profitable investment option.
How popular is Rumble and why is it important for CFVI stock?
Rumble is a video-sharing social media platform. You can think of it as similar to YouTube or the new hit TikTok. But, Rumble differs in that it’s a self-proclaimed “neutral video platform.” The company attracts mainly conservative users who may have been stifled on other social media sites like Facebook or Twitter. In fact, former President Donald Trump joined the app after he was kicked off Twitter and Facebook.
With social media and censorship coming into focus the past few years, Rumble is attracting users quickly. New reports are showing strong engagement from users. In the third quarter, Rumble averaged 36 million monthly active users with 8 billion minutes watched per month, up 44x from Q3 2020. The report shows not only is the platform attracting users, but they are engaging with content.
So far, the excitement is pushing CFVI to new highs, now up over 30% (January 18, 2022). The stock looks set to continue its momentum until the Rumble merger date. In fact, CFVI stock is No. 2 on the most active Stocktwits list today, behind AMC Entertainment. What’s the forecast for CFVI stock and should you buy it now?
Should you buy CFVI stock?
The SPAC merger between Rumble and CFVI will combine both companies. The funds raised by CFVI at IPO will be passed onto Rumble, to invest in the companies expansion strategy. Assuming the transaction is successful, the CFVI merger will provide approximately $400 million in proceeds to Rumble.
Although Rumble is attracting new users, will they be able to sustain the success? If they fail to attract a diverse user base, which is mainly conservative right now, it could spell trouble for CFVI stock. And more, Rumble will need to capitalize on their strategy to attract creators through the differences in their policies. This is important because creators bring users, and acquiring large-scale creators will significantly increase its monthly user base. Can they overcome these challenges and stay competitive.
Although CFVI stock has close ties to the former president, will he be enough to continue attracting new members? And when Social Truth launches, how will it play a role?
Can you buy Rumble stock now?
Since Rumble isn't publicly traded yet, you can't buy the stock directly. However, after the merger announcement, buying CFVI gives you exposure to Rumble. When the transaction is complete, the CFVI ticker will change to Rumble’s ticker and shareholders of CFVI stock will convert to the combined companies shares. The argument assumes that the merger will sail through. Looking at the soaring stock price of CFVI, the merger should eventually get approval from stockholders.
How to buy CFVI stock with a Brokerage Account?
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