Simply put, Vinco Ventures (NASDAQ:BBIG) is not for the faint of heart. As we’ve seen over the past year, BBIG stock has made big moves, both higher and lower.
Some of this has to do with its small size and low share price. Along with this, there are still some unanswered questions about the company’s capital structure and corporate structure. The details could be positive, they could be negative. We just won’t know until we do know (when Vinco next releases quarterly financials).
On top of these two factors, some may point to its status as a “meme stock,” or its high-short interest (around 30% of its float has been sold short) as something else that makes it very volatile. Yet whatever the reason, there’s no escaping the fact you can’t approach the digital holding company like you would with more “blue chip” investments.
That said, if you have the risk tolerance for it, and are willing to dig into the details? You may want to give it some consideration. Although far from a perfect situation, there’s still big potential with its myriad of holdings in early stage companies.
The Latest With BBIG Stock
Since writing about it last month, admittedly little has changed with the “story” behind Vinco. The company remains in the process of spinning off its Cryptyde crypto and non-fungible token (NFT) unit.
Over the past month, the latest BBIG stock rally has come and gone. Going from $2.50 per share back up above $5 per share, it has since pulled back, and is at around $3.15 per share today. As before, there are many unanswered questions about Vinco.
For instance, questions about its pending merger with ZASH Global, and when that’s going to close. Both companies, though sharing the same management teams, remain independent. This makes assessing its balance sheet (Vinco and ZASH co-own a lot of assets) difficult. There are also still unanswered questions about its past issuance of warrants, and their dilutive impact.
For a lot of investors, a lack of progress, and a couple of red flags may make this appear to be a “no go” situation. My view? I wouldn’t be like the crowd, and hop into this the next time it’s trending on Reddit.
At the same time, I wouldn’t rule it out as a possible buy, either. Putting its capital into several high-risk but high-potential early stage companies, success with either and/or all of them could result in another big move for shares.
Opportunities and Risks With Vinco
Again, BBIG stock is far from a perfect situation. Not just because of the lack of clarity with some of its financial and organizational details. With its main non-Cryptyde holdings, including social media platform Lomotif and AdRizer, there’s big risk along with big opportunity.
Lomotif may be very similar to TikTok. The site also has its own video streaming platform. In fact, NBA legend Shaquille O’Neal recently hosted a program for the site. Its big plans to grab a large share of the Indian social media market is another encouraging sign. But it’s still far from certain whether it ultimately gives TikTok a run for its money.
Yes, the situation with AdRizer, a provider of digital advertising services, is far less murky. It’s already well into the monetization stage, and is currently experiencing a high level of revenue growth. Still, it’s unclear whether this ad platform will enable Vinco to better monetize its Lomotif platform. That was a key reason behind the purchase of it by Vinco and ZASH’s ZVV Media Partners joint venture.
Alongside this, there’s the uncertainty behind the Cryptyde unit itself. There’s a fair amount of excitement around this divestiture, which will result in one of the few NFT “pure plays” out there with stocks. Yet given how much more cautious the market has been about more speculative plays lately? It may not wind up becoming the “hot stock” some are anticipating.
The Takeaway With BBIG Stock
Earning a “B” rating in my Portfolio Grader, I’ll reiterate Vinco Ventures is not a stock for all types of investors. The more risk averse may want to skip on it, given its high volatility.
Even those who aren’t afraid of risky plays shouldn’t rush into it. I’d recommend diving into the details yourself before deciding whether this is a worthy speculative play to add to your portfolio.
When/if it makes another “to the moon” move is anyone’s guess. But the next time it makes a big announcement, it may just well result in another outsized move for 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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