Since completing its special purpose acquisition company (SPAC) merger, Rumble (NASDAQ:RUM) stock has fallen sharply in price.

After receiving a 39.6% boost on Sept. 19, its first trading day post-deSPACing, RUM stock has since tumbled from $16.81 to around $12 per share.

But while frustrating, this pullback has opened up an opportunity for investors who have yet to enter a position.

Now may be the time to go contrarian with shares in this video hosting platform. There’s a lot of concern right now that Rumble will fail to live up to expectations.

This is mainly due to recent news that investors are concerned is a sign of diminished prospects for alternative media platforms.

However, based on its success so far, I wouldn’t discount its chances of one day becoming a large, profitable enterprise, especially as its recent SPAC transaction provides it with substantial growth capital.

A Closer Look at RUM Stock

While down since the deal closing, Rumble’s predecessor, SPAC CF Acquisition VI (or CFVI) zoomed considerably higher ahead of the deal closing. The market was clearly interested in this stock ahead of the transactions, so why is the stock now out of favor after the deSPACing?

It’s difficult to prove, but it’s possible increased chatter about CFVI stock among the meme crowd led the stock to surge before, during, and right after the merger.

These speculators may have remembered how well SPAC stocks performed last year, and assumed this trend would play out with RUM stock.

However, this failed to happen, for two reasons. First, market conditions today are considerably different than they were a year ago. Macro uncertainties have soured investor enthusiasm for speculative plays, especially retail investor enthusiasm. Second, there is big concern about the future viability of platforms like Rumble.

Mostly, due to news that Elon Musk is going through with his offer to buy Twitter (NYSE:TWTR).

As InvestorPlace’s Samuel O’Brient reported on Oct. 7, investors are weighing whether changes to Twitter implemented by Musk, who has been critical of Twitter’s past approach to free speech, will affect the popularity of alternative platforms.

It May not Be Game Over for Rumble

With so much currently working against it, why buy RUM stock? Good question. Figuring out when exactly SPAC stocks/speculative growth stocks will come back into favor is easier said-than-done. I wouldn’t try to handicap when exactly this will happen.

I will say, however, that it’s possible investors right now are too pessimistic about the company’s future.

As O’Brient pointed out in the article referenced above, a Musk-owned Twitter is much more likely to cause a “game over” moment for another alternative media platform.

That would be Truth Social, owned by former President Trump’s TMTG. TMTG, as you may know, is in the process of going public via a SPAC merger with Digital World Acquisition (NASDAQ:DWAC). Rumble differs from Truth Social in another way: it has achieved tangible success.

While Truth Social has struggled to convert Trump’s fanbase into users, Rumble currently has 78 million monthly active users (MAUs). That’s a figure that’s in the ballpark of the number of Americans who voted for Trump in 2020 (74.2 million).

Rumble is also well into the monetization stage. Estimated to generate $22 million in revenue this year, analysts also forecast revenue to rise to nearly $100 million during 2023.

The Verdict on RUM Stock

In contrast to the platform that it’s commonly compared to (Truth Social), Rumble has already established itself as a viable alternative media platform. This points to it thriving, not merely surviving, in the years ahead.

That’s not all. Another positive in Rumble’s favor is the fact that, relative to other fast-growing, early-stage companies, its current level of cash burn is not excessive.

That means it’s not likely to use up much of its $400 million in SPAC proceeds just on keeping its existing operations going. Rather, the company can put this capital to “level up” on its past success, putting it further on the path towards consistent profitability.

As things progress in the years ahead, RUM stock could come back into favor, enabling shares to make a big comeback. Hence, investors should consider making shares a speculative buy, after their recent weakness.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.