It’s hard to pin down or pigeonhole Vinco Ventures (NASDAQ:BBIG) to just one market. That shouldn’t be a problem for BBIG stock holders, though, as diversification is usually a good thing.
To put it simplistically, Vinco is in the business of acquiring other businesses. It’s a technology-obsessed holding company with excellent potential.
Moreover, BBIG stock is a perfect target for social-media traders. At any given moment, Reddit users might pump up the share price, so you’ll want to be prepared for that possibility.
That’s happened before, and I believe it could happen again. Plus, Vinco’s got some red-hot irons in the fire, including a deal that notably involves digital tokenization.
A Closer Look at BBIG Stock
Will Vinco reach cinco? Or will it sink-o?
Sorry, I just couldn’t help myself there. But there’s a definite resistance point at $5 for BBIG stock, and that’s something that traders should be on the lookout for.
Back in January, it appears that Reddit users may have targeted Vinco Ventures shares for a short squeeze. As a result, the share price rallied to $5 before pulling back.
Fast-forward to June, and we see that the bulls pushed BBIG back up to $5, not just once but actually twice. But again, the buyers were rejected at that level.
As of Aug. 4, the stock was trading at around $3 and seemed directionless. And in the interest of full disclosure, I must relay an unsettling piece of information to you: Specifically, Vinco Ventures’ trailing 12-month earnings per share is a loss of $5.20. That’s not particularly encouraging when the share price is close to $3.
Therefore, BBIG stock is really meant for speculation. Please don’t load up on the stock, even if you believe in the company’s future.
The Future of Memorabilia
As you may already be aware, there’s a market for collectibles in the 2020’s that isn’t based on tangible items.
The market for non-fungible tokens (NFTs), which are basically tokens used by people to buy and sell art and collectible items online, has absolutely blown up.
These items can be digital, such as a tweet, or they can be tangible, such as painting. Some folks are baffled by the increasing value of NFT’s, while others are enthused about this emerging market niche.
If you’re sitting on the pro-NFT side of the fence, then Vinco Ventures has some interesting news for you.
In a fresh announcement, Vinco revealed that its subsidiary, Emmersive Entertainment, is launching a music streaming platform with a focus on NFT’s.
Emmersive Entertainment’s objective is to advance the NFT market by “offering one-of-a-kind augmented digital and physical tokens” and, in doing so, creating “the future of memorabilia.”
Art and Music, Digitized
To kick off the new NFT platform, Emmersive Entertainment is releasing 1 million copies of Tory Lanez’s new album, “WHEN IT’S DARK.”
This limited-edition NFT (or, as the company calls it,”E-NFT”) will sell for just $1. This particular NFT will provide both streaming music and the accompanying artwork.
Now, you might be thinking that selling this music-and-art combo for $1 is a crazy thing to do.
Yet, we have to look at the big picture here. The company wants to get people accustomed to the idea of experiencing entertainment in a new way.
If Emmersive Entertainment can get people hooked on these “E-NFT’s,” then that’s a win-win for the artist as well as the platform.
And by the way, the aforementioned Tory Lanez album will get plenty of airplay on Lomotif, a competitor of TikTok.
This all makes perfect sense, as Vinco Ventures has a major stake in Lomotif. As the press release states, “This will give access to tens of millions of people from around the world to Tory’s once in a lifetime first NFT Album.”
The Bottom Line
So there you have it: a tokenization venture that you probably never expected.
It’s risky, as is anything connected to the still-emerging NFT market.
Investing in BBIG stock is also risky — there’s no denying it.
Still, for a small speculative position, this could be a worthy buy-and-hold with the $5 resistance level as a primary target.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.