One of the red-hot stocks that’s generating a lot of retail investor interest of late is Vinco Ventures (NASDAQ:BBIG). Indeed, today’s 17% rise in BBIG stock is among a number of rallies over the past five trading days. Over this timeframe, BBIG stock has provided investors with gains of more than 20%. That is, for those with the guts to invest in this high-volatility name.
Putting BBIG stock in perspective, this is a company that started the year around $1.35 per share. Since then, shares soared to nearly $12.50 per share last month before settling down to below $5 per share last week. What was a near 10-bagger has turned into a five-bagger. For those holding onto this stock long term, perhaps this volatility is nothing to be concerned with.
One of the reasons behind the rapid ebb and flow of BBIG stock has been this company’s relatively high short interest. Indeed, any highly shorted stock is one that’s likely to give retail investors goosebumps. We’ve all seen the rallies in other short squeeze stocks this year.
However, there’s another catalyst investors appear to be jumping on today. Let’s dive into what’s propelling Vinco Ventures higher right now.
BBIG Stock Surges Ahead of Key Crypto Catalyst
Today, investors appear to be pricing in enthusiasm around a key crypto update set to be unveiled this Friday. Vinco Ventures recently provided investors with a proxy statement for a spinoff. Titled Cryptyde, this spinoff will aim to allow the company to leverage its blockchain technologies further. By doing so, the company will “disrupt consumer facing industries.”
Sounds good to me.
Investors appear to be growing increasingly bullish on crypto-related stocks. Crypto prices have continued to surge in recent weeks. Accordingly, companies such as Vinco Ventures that are not only short-squeeze plays but also ones with crypto exposure, represent perhaps the holy grail for speculators right now.
How this spinoff ultimately pans out remains to be seen. However, expectations are that BBIG stock could remain a highly volatile one for some time. Accordingly, this is a stock on my watchlist right now.
On the date of publication, Chris MacDonald 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.