Rumble: Wait For Post SPAC Discount
- Rumble investors vote on the deal on September 15.
- The company will raise ~$400 million without any redemptions, but the weak financials should doom the stock once public.
- The stock will likely sink from the current $3+ billion market cap when revenue totals are below $50 million.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Rumble plans to close the SPAC deal with CF Acquisition Corp. VI (NASDAQ:CFVI) next week via a shareholder vote. The proclaimed neutral video platform competing with YouTube, owned by Alphabet (GOOG, GOOGL), remains a work in progress. My investment thesis is Neutral on the stock until the SPAC deal closes and the financials are more visible with a likely discount to occur typical of most SPACs.
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Update - Sept. 23
Market isn't helping, but Rumble is getting crushed here. Remember, the negative thesis is based on weak financials and the company has yet to release Q2 numbers.
Update - Sept. 19
Rumble is up 10% today on closing the SPAC deal with the stock trading under RUM now.
- Video-sharing platform Rumble (NASDAQ:RUM) said that after successfully completing its business combination with blank check company CF Acquisition (CFVI), its shares will begin trading on Nasdaq under the ticker symbol RUM from today.