Popular Reddit name Vinco Ventures (NASDAQ:BBIG) is making volatile moves again, with the stock up more than 20% today. As a refresher, the company changed its name to ZASH last October, although this name change has not been reflected on financial platforms yet. ZASH operates as a holdings company with ownership in several consumer and digital marketing brands. The company’s business model is based on the BIG strategy: Buy, Innovate, and Grow. Now, with the new year upon us, shares of BBIG stock look primed for a short squeeze.
Why Is BBIG Stock Soaring Higher Today?
While there is no company-specific news to explain BBIG stock’s price movement today, short interest as a percentage of float tallies in at 21%. Generally, any short interest above 10% is considered significant. Furthermore, BBIG stock has increased by over 110% the past 5 trading days. The stock’s popularity on Reddit and other social media sites may have contributed to the gains.
According to Reddit stock tracker ApeWisdom, BBIG stock was among the top 5 most popular tickers from Jan. 14 to Jan. 17. The company’s ventures into non-fungible tokens (NFTs) and cryptocurrency may have attracted speculative investors as well.
ZASH is no stranger to short squeezes. The company’s low market capitalization of roughly $700 million makes it susceptible to quick, volatile price movements. This also makes ZASH a target for Reddit traders. From Aug. 26 to Sep. 9 of last year, BBIG stock squeezed higher by more than 250%. The short squeeze may have been aided by ZASH announcing that it would acquire Lomotif, an Indian media platform.
The Bottom Line on Vinco Ventures and ZASH
Looking forward, investors are anticipating the spin off of Cryptyde. Cryptyde will be a crypto-centric spinoff of ZASH that will eventually trade under the ticker TYDE. In addition, Cryptyde will be a “a selective acquisitions company” that focuses on disruptive blockchain innovations. As of now, the official Cryptyde website is live, but not active.
BBIG shareholders also have high hopes for the E-NFT marketplace that was released by ZASH last fall. The E-NFT marketplace is designed to be decentralized by providing content creators with a “unique tokenization platform.” Furthermore, the When It’s Dark album by Tory Lanez received high demand upon its release on E-NFT. The album sold more than 1 million copies, making it the first album in history to reach platinum status on the blockchain.
On the date of publication, Eddie Pan did not hold (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.
