After months of trading sideways, Vinco Ventures (NASDAQ:BBIG) is making big moves once again. In the past week, BBIG stock has spiked up over 110%. What’s driving this latest bolt higher is up for debate.
But what it does demonstrate is how it hasn’t and will continue to not, take much to send this speculative small cap growth stock to higher prices. With big upside potential if any of its “ventures” reach their respective “payoff moments,” this will remain a high-risk, high-potential return type of opportunity.
Having said that, it’s important to keep in mind the term “high risk” when it comes to this stock. While moving higher now, I wouldn’t be surprised if it experiences another pullback. There’s been little news out of the company lately, and there’s still a lot of unanswered questions about its complex corporate structure.
Still, while no perfect situation, more news/information from this company could mean an outsized move for its shares. Entering a small position may be worthwhile.
The Latest With BBIG Stock
With no press releases of any kind from the company since Nov. 23, headlines are not what’s behind the latest spike in price for Vinco Ventures.
As InvestorPlace’s Brenden Rearick reported Jan. 10, its latest rally could be due to speculators wagering that its spinoff of its crypto mining and non-fungible token (NFT) business, Cryptyde, happens sooner rather than later. This may or may not be the reason.
Same goes for another possible reason for the BBIG stock rally. That would be chatter about the Reddit crowd targeting it for a short-squeeze. It’s not for certain that’s what is playing out, either. Nevertheless, no matter what’s driving it higher today, this is another good example of how when this stock moves, it moves big. In either direction.
Think of it this way. It soared by over 110% on no news. You can imagine how far it could climb if it were a big development to announce. In fact, one or several big developments could be around the corner.
Two Catalysts Could Spark The Next Vinco Rally
There’s a good chance this latest rally isn’t the last time BBIG stock skyrockets in price. Several big developments could send this stock up to its all-time high ($12.49 per share), and beyond.
First, while it’s been taking some time, the spinoff of Cryptyde could finally happen sometime this year. Any update on this will likely result in another big spike for Vinco shares. Second, progress with the scaling up of the assets it jointly owns with its partner ZASH Global could result in outsized moves for the stock. As I discussed back in December, through its ZVV joint venture with ZASH, it owns two promising early-stage companies: AdRizer and Lomotif.
AdRizer, which provides digital advertising services, is growing fast. Growth capital from Vinco/Zash could help hasten its scaling up. Lomotif, a social media platform, is very similar to TikTok. It’s a bit of a stretch right now to call it the “next TikTok.” Yet even if it only becomes a smaller version of TikTok, it could still wind up becoming worth a lot more than it paid for it ($125 million).
Put simply, Vinco Ventures isn’t short of catalysts. Take into account the spinoff, the potential with its other holdings, and its past performance. Put it all together, and another triple-digit percentage move higher isn’t out of the question for this stock.
The Bottom Line on BBIG Stock
Again, I’ll reiterate that while this stock, which gets a “B” rating in my Portfolio Grader, has big upside potential, it is still very risky. A lack of updates since November means many questions about this company remain unanswered. For example, it still appears that the previously-announced merger between it and ZASH has not happened.
Interestingly enough, it seems the company has done everything but actually merge with ZASH. Today, both companies share the same management teams, and hold joint interest in the company’s non-crypto assets.
Along with this, we’re still waiting on its 10-Q filing with the Securities and Exchange Commission. This report will give us a better idea of the dilutive impact of last year’s issuance of warrants. An update on these questions could also result in a big move for shares. Higher or lower, depending on the answers.
If you may want to keep this in mind too before you decide to enter a position. Even if you’re a risk tolerant investor, it’s probably best to make this a small position in your portfolio. Nevertheless, given the potential for success with one its endeavors to really move its needle, keep an eye on BBIG stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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