Some say it’s a confusing mess or a mystery. But when it comes to Vinco Ventures (NASDAQ:BBIG) and BBIG stock it may be best to drop the metaphor and simply call it what it is — a former meme stock that isn’t strong enough on its own to keep up. Let me explain.
It’s 2022 and a historic bull market rally of nearly two years has been upended. Led by a bearish correction in the tech-heavy, large-cap Nasdaq, investors are hiding out and licking their wounds in top stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA) and many others.
It’s no secret the punishing price action has been tied to Russia, inflation and a less accommodative interest rate program going forward. And investors are also free to point fingers at still-lingering pandemic-based supply chain issues.
And during Monday’s minor undercut of lows in the Nasdaq, word of new lockdowns in China amid a new wave of Covid-19 cases had many reacting bearishly.
Alas, while none of that helps, that can’t entirely explain BBIG stock’s year-to-date eye poke of 11%.
Importantly, this is a 30-cent loss in share value on a $300 million small-capitalization company that is hardly worth mentioning in the same breath as AAPL stock or MSFT. Moreover, what should be mentioned is the greatly reduced entertainment value it’s providing to the forceful speculative traders informally known as Reddit apes. And that’s a problem for BBIG stock — a company whose shares made a home for themselves in the market’s fun-while-it-lasted meme stock spectacle.
But at this point, long gone are the days of GameStop (NYSE:GME) or AMC Entertainment (NYSE:AMC) making the nightly news. So too are the fast-money, eye-catching gains in GME and AMC stock coming at the expense of bearish shorts being squeezed.
And even at the height of meme stocks’ cachet, BBIG stock was nothing more than a second-tier act in the Reddit playbook.
So investors can try to make a sober assessment of BBIG stock. But the takeaway would be a confused mess as InvestorPlace’s Ian Bezek recently wrote. Or said another way, for a tech holding company whose best feats of manufacturing include dilution to shareholders, cool sounding business pivots, spinoffs and forays into whizbang technology that never seems to pan out, BBIG stock “is what it is.”
BBIG Stock Weekly Price Chart
Source: Charts by TradingView
BBIG stock isn’t looking so hot lately. And these days the price chart is largely in agreement. After reaching a high of $12.49 in early September, shares of BBIG have retreated 73%. It’s a significant unwind, but that’s not the only damning piece of evidence against Vinco Ventures.
Importantly, more recent raids against BBIG’s short interest, which today totals roughly 16% of shares outstanding, have been quick to unravel and less fruitful for Vinco’s holdout ape base. Observably, the decline hasn’t been linear. And surely some Redditors profited from October’s and January’s doubles in BBIG stock.
Still, the grand total of those efforts have taken BBIG stock nearly back to where it started prior to meme stocks becoming a thing and everyone scrambling to find “the next GME stock” — turning such plays into a market theme alongside growth and value investing.
Bottom line for BBIG stock, don’t expect another planet of the apes uprising in 2022. It looks like the chances for further monkey business in this company are falling fast.
On the date of publication, Chris Tyler 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.