When you hear the names Julianne Hough or Nina Dobrev, it’s likely not within a conversation about the stock market. Both actresses are celebrated for their accomplishments on screen, but they’ve also been making a name for themselves in the business world. In 2019, the pair launched Fresh Vine Wine (NYSEAMERICAN:VINE), a producer of premium wines described as both low carb and low calorie. VINE stock made its public debut on Dec. 14, 2021. However, though the initial public offering (IPO) generated $22 million, the buzz was short-lived and the stock quick to fall. Until this week, shares hadn’t received much attention, failing to generate any market momentum.
Yesterday brought a new twist as VINE stock began to rise for the first time since its debut, however. During market hours, the stock spiked by 28% and kept rising during after-hours trading. Even with this unexpectedly positive pattern, though, the company halted trading three times today. Each halt lasted no longer than a few minutes each. Still, whenever trading is halted it raises questions from investors. The company did not issue any statements as to the reason behind the halts, but it seems that the day’s growth was spurred by an increase in traction on social media. This is likely due to VINE’s high float and unusually high trading volume.
What else should investors be considering when evaluating this company? Let’s take a closer look.
What to Know About VINE Stock
- While there are decidedly fewer public traded companies that operate solely in the wine sales business, companies with holdings in the luxury wine market such as LVMH Moet Hennessy Louis Vuitton (LVMUY) are expected to do well this year. That could mean a brighter future ahead for VINE stock.
- Despite dealing in a product synonymous with California and being founded by two Hollywood stars, Fresh Vine Wine is actually headquartered in Minnesota.
- Founders Hough and Dobrev worked with noted winemaker Jamey Whetstone to create a wine with low sugar and carb counts. Part of the mentality behind it was to produce and distribute wines that fit into a holistic lifestyle.
- While Dobrev tells Variety that the companies expansion plans will be kept “vague for now,” she adds that subscribers can expect the release of a “reserved Cabernet” within the coming year as well as other “different varietals.”
- This company may be based in Minnesota, but according to its website its wines are produced and bottled in the Napa Valley. The current collection includes a Cabernet Sauvignon, a Pinot Noir, a Chardonnay and a Rosé as well as a Limited Reserve Napa Cabernet.
- For the actual winemaking process, the grapes used are grown locally in California. They are also hand-selected by the company’s premier winemaker.
- The concept behind the company centers around producing wines for active lifestyles. The founders see this as a gap in the wine market.
- While VINE stock has struggled following its IPO, the company founders maintain that the capital raised will help them expand into further areas of wine production. They see this as their primary avenue toward sustainable growth.
On the date of publication, Samuel O’Brient 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.