Fewer stocks were more synonymous with turbulence in 2021 than Vinco Ventures (NASDAQ:BBIG). The company is known for the “buy big” philosophy that inspired its trading symbol. With a reputation for either rising or falling dramatically, though, it’s not hard to see why BBIG stock has spooked investors. Much of its volatility of late has been due to the drawn-out saga of the company’s Cryptyde spinoff going public. Today, however, shares are up for a different reason amid reports of a news catalyst.
What’s Happening With BBIG Stock
This morning Vinco announced that it has completed the acquisition of adtech company AdRizer, a company noted for applying artificial intelligence (AI) technology to digital advertising analytics and media buying. A statement released by Vinco confirmed that the deal consisted of $38 million in cash paid and up to 10 million Vinco shares.
Even in the face of a deal like this, BBIG stock remains turbulent. It began this morning by falling but was quick to rebound. As of this writing, it is up 4.5% for the day and seems to still be moving upward. The stock has performed well this week so far, rising more than 10% over the past five days. However, it remains in the red for the month by 29%.
Why It Matters
It’s nice to see an announcement from a company like Vinco that seems like it can only help BBIG stock. AdRizer offers the type of technology that can certainly help Vinco continue to grow. Its platform leverages advanced machine learning algorithms and deep integrations with all primary sources of web traffic such as Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google, Meta Platforms’ (NASDAQ:FB) Facebook and Instagram, and Twitter (NYSE:TWTR).
According to Vinco CEO Lisa King, the company is focused on “deploying AdRizer’s technology platform to monetize the content creation and streaming capabilities of the Lomotif short form video app through digital advertising.”
In an age where data clarity is of increasing importance, AI tech like AdRizer’s Cortex platform can allow companies to scale their digital operations by precisely tailoring media buying strategies. The statement also notes that in developing Lomotif’s advertising platform, AdRizer will seek “to maximize the effectiveness of its advertising strategies in light of current data privacy safeguards.”
AdRizer’s clients include the E.W. Scipps Company and Brightcast. Its founder and CEO Ken Bond will maintain his position for the next three years.
What It Means
For Vinco, this is absolutely a step forward. The company is focusing on helping grow Lomotif, a platform that has proven to be a good investment so far. Last week, BBIG stock rose after it was announced that the TikTok competitor would be broadcasting an event hosted by former basketball star Shaquille O’Neal.
Lomotif has the potential to keep growing, especially with the added benefits of AdRizer’s platform. If Vinco is indeed able to deploy it to scale Lomotif’s operations, it may boost BBIG stock. More than anything, the company needs to prove that it can achieve sustainable growth. This expansion should be reassuring for investors, but it is hard to have complete faith in a company with Vinco’s history. That said, BBIG stock is absolutely worth watching as this new chapter unfolds.
On the date of publication, Samuel O’Brient 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.