Vinco Ventures (NASDAQ:BBIG) stock has been on several wild rides recently. But could Vinco Ventures be the ultimate dealmaker?
One thing that BBIG stockholders are counting on is the company’s ability to develop businesses with high growth potential.
You just never know what kind of deal Vinco will make next. For instance, Vinco subsidiary Emmersive Entertainment recently announced a plan to launch the world’s first NFT (non-fungible token) streaming movie soundtrack.
Vinco Ventures’ strategy is to buy, innovate and grow. As we’ll see, the company is indeed growing, but is also undergoing some major changes that you’ll want to be aware of.
At the end of the day, you might find that BBIG stock is a risky and imperfect investment. Nevertheless, a bullish argument can be made as Vinco Ventures undergoes what might be its greatest transition.
A Closer Look at BBIG Stock
The pops and drops in the Vinco Ventures share price are either thrilling or frightening, depending on one’s perspective. Clearly, this stock isn’t for risk-averse investors.
For instance, despite the lack of a news-based catalyst to justify this price move, BBIG stock ran from $2.19 in August to $12.49 in September.
Was it magic? Or more likely, was Vinco Ventures the target of a massive Reddit-fueled short squeeze?
I’ll let you decide for yourself. In any case, BBIG stock dropped to $5 before taking another roller-coaster ride to $8 in October. Frustratingly, the share price slid back below $5 again recently.
It’s difficult to establish any sort of price range here, though anything close to $4 looks like a good place to start a position.
Value-focused investors might have a point of contention, though. In particular, Vinco Ventures has trailing 12-month earnings per share of -$12.55.
That’s bad news when the share price is between $4 and $5. Therefore, BBIG stock should be viewed as more of a speculative bet than a value play.
Expanding into a Broader Market
There’s no denying it. Vinco Ventures’ second-quarter 2021 results were less than stellar. On a year-over-year basis, Vinco’s revenues declined 47.97%, while the company’s gross profit decreased by 16.97%.
Clearly, Vinco Ventures needs to make some changes. To that end, the company is now leaning towards a blockchain-focused market, which could provide a powerful revenue stream.
According to the press release, CW Machines will focus on simplifying the consumer ownership of Bitcoin mining equipment through the integration of smart-contract technology.
There’s some serious hash power at work here, as CW Machines launched its operations with an initial order of 2,000 Bitmain Antminer S19’s paired with U.S.-based power allocations.
Cryptyde CEO Brian McFadden emphasized that this is just the beginning of a much larger foray into a high-conviction, tech-focused field.
“The launch of this joint venture entity signifies the start of our expansion into the broader crypto and blockchain market,” McFadden clarified.
Changing the Name, and Much More
Embarking on a blockchain-focused joint venture is a significant event for Vinco Ventures. Yet, there’s something even more momentous afoot. Apparently, Vinco Venture board is changing the name of Vinco Ventures to ZASH.
With that, ZASH will represent all of the business’s companies moving forward. ZASH is not a newly formed company but an already existing one. It recently acquired Lomotif, a fast-growing video-sharing social- networking platform.
Moreover, there will be some shuffling going on at the executive level.
Christopher Ferguson, Vinco Ventures’s former CEO, will serve as senior strategic advisor with ZASH. Also, Brett Vroman, the former CFO of Vinco Ventures, will serve as CFO of Cryptyde.
It’s a lot to take in, but these are need-to-know developments for any current or prospective BBIG stock investor.
The Bottom Line
It’s probably not a bad thing that Vinco Ventures is making big changes. The company hasn’t had a positive earnings profile, but the aforementioned developments might set Vinco on a more profitable course.
BBIG stock will continue to be risky, but one thing’s for sure: Vinco Ventures is always ambitious, and never predictable.
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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.