I’ve been critical of holding company Vinco Ventures (NASDAQ:BBIG) in the past. In late October, I wrote that there was a lot of risk in BBIG stock and that its core business was overvalued. This was when shares were trading at around $5. Today, BBIG stock is trading around $3 per share.
Vinco Ventures has taken its shareholders on a wild ride this year. BBIG stock soared from $2.44 at the start of the year to a high of $5.49 on Jan. 18, up 125% in two and a half weeks. This was followed by a quick drop, some consolidation, and then another sell-off that took shares to a 52-week low of $1.94 on March 14.
As it stands, Vinco Ventures’ business organization and structure are quite confusing. But the company is undergoing an internal reorganization that should give it a clearer strategic vision and direction for its future. And positive news on this front could benefit BBIG stock investors.
For instance, on Monday, shares surged 24% on the day, presumably due to retail trader hype and the company’s plans to spin off its crypto business, Cryptyde.
Lomotif Looks to Mount a Challenge to TikTok
Without a doubt, Vinco Ventures’ prize asset is its Lomotif app. In simple terms, Lomotif is a short-video platform that is positioned as a rival to TikTok. Truth be told, after some digging, I couldn’t find anything that truly sets it apart from TikTok. Like TikTok, Lomotif allows its users to edit videos with various gimmicks like filters, stickers, slow motion and zoom.
Vinco Ventures is using its expertise in media to try to boost the reach of its Lomotif app. One of the more interesting initiatives is LoMo TV – an entertainment and content network within the Lomotif app. LoMo TV offers live streaming and videos of original programming.
LoMo TV recently showcased a Super Bowl weekend show featuring NBA superstar Shaquille O’Neal. The program called “Shaq’s Fun House” had musical performances by Lil Wayne, Zedd, Diplo and DJ Diesel, as well as appearances by other sports stars.
LoMo TV is also live streaming the Okeechobee Music and Arts Festival. Event headliners are expected to include Tame Impala, Megan Thee Stallion and Porter Robinson. I’m betraying my age by admitting I have no idea who those people are, but I find the angle that Vinco Ventures is pursuing to drum up interest in Lomotif interesting.
India Could Be a Huge Market for Lomotif
Ultimately, I really can’t see Lomotif usurping TikTok. The latter just has too big of a base and too powerful of a brand. Unfortunately for Vinco Ventures, the social media industry tends to be a winner-take-almost-all market.
There is one major exception to this, though, which is the Indian market. TikTok is currently banned in India due to its alleged ties with the Chinese government. Vinco Ventures recently launched its Lomotif app in the Indian market.
India is a potentially huge market given its large population and rapidly growing economy. India is on track to overtake Japan as the second-largest economy in Asia by 2030. If it continues its current trajectory, India’s gross domestic product is also expected to surpass that of Germany and the U.K.
Lomotif’s successful launch in the country was due in part to its partnership with India’s Socialkyte. The influencer marketing platform provided the catalyst to drum up hype for the launch through its network of 100,000 influencers and artists.
“We always believed Lomotif would be a huge success in India and to see our initial response from the Indian market even exceeded our expectations,” said Socialkyte co-founder Gurjot Batra.
The Bottom Line on BBIG Stock
The key thing to keep in mind with Vinco Ventures is that it is a news-driven stock, not one that is anchored in fundamentals.
Still, BBIG stock has enough volatility t0 make it worthwhile for day traders and swing traders. If you’re fast enough, you can get probably get in and out with a profit. The rest of us should watch from the sidelines.
On the date of publication, Joseph Nograles 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.
Joseph Nograles is a part-time freelance copywriter focused on the financial industry. He has worked in a wide variety of industries from tech to consulting with one of the “big four.” He has always enjoyed analyzing businesses and has been a CFA charterholder for nearly a decade now.