Talk about “going viral.” Shares of Vinco Ventures (NASDAQ:BBIG) are up a fevered 250% in pre-market action on Thursday after announcing it would merge with ZASH Global Media.
If ZASH isn’t familiar to you, maybe its history with the innovators and early investors with TikTok, Music.ly, Triller and Movie Pass are recognizable. The company says it has an influencer platform and helps facilitate viral content with its content-focused technology.
That proprietary influencer technology has fueled more than 2 billion video views on those content-sharing platforms. Plus, ZASH claims a current follower network of more than 350 million users worldwide.
Vinco, a mergers and acquisition company focused on digital commerce and consumer brands, recently rebranded. Prior to November 2020, you may have known it as Edison Nation.
The deal comes as TikTok grabs the lead in global app downloads, overtaking Facebook (NASDAQ:FB) in 2020, according to application tracking website App Annie. Fast Company reported that “TikTok’s tidal wave continued throughout 2020 — particularly as content-hungry consumers flocked to the app to create, socialize and stay entertained.”
The Bottom Line on BBIG Stock
So what else should you know about Vinco Ventures and BBIG stock right now? Based on the stats, there is no denying that TikTok is taking the world by storm. That reality alone makes the merger news today interesting.
Additionally, ZASH and Vinco have a real opportunity as a joined entity in this streaming video market. Although TikTok may face some political headwinds, the medium looks here to stay. For investors then, that means there is clear justification to the excitement. However, trading for just over $5 after a major rally, risks remain. As you consider BBIG stock, be sure to do your own research.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
