Vinco Ventures (NASDAQ:BBIG) stock is up 20% today on social media chatter that the company is going to be targeted in a short squeeze.
Additionally, investors seem to also be gravitating to news that Vinco Ventures, which is basically a holding company, still plans to spinoff Cryptyde later this year. Cryptyde is its cryptocurrency and non-fungible token (NFT) unit.
What Happened With BBIG Stock
Today’s lift brings BBIG stock’s gains year to date to 22%. The shares are now trading at $3 each. However, the stock is down 76% from its 52-week high of $12.49 reached in September 2021. That high came the last time retail traders really honed in on Vinco Ventures as a short squeeze opportunity.
On Twitter currently, some users are rallying around the hashtag #bbigsqueeze. Commentators are posting messages such as “$BBIG she’s ready to blow!!!” These retail investors believe that what we are seeing now is another short squeeze in BBIG at play.
Why It Matters
Vinco Ventures’ big claim to fame is that owns social media platform Lomotif, which is similar to TikTok and based in Singapore with operations in India. Also captivating investors is its plan to spinoff Cryptyde, its digital currency unit.
With this in mind, investors are also paying attention to Vinco’s latest filing with the U.S. Securities and Exchange Commission. In it, the company shared financial statements for Cryptyde. Perhaps interesting in this filing is language that indicates it still anticipates the spinoff to occur in early 2022.
What’s Next
Vinco Ventures shares are getting a nice bounce today, but how long this bounce lasts is unknown. While investors continue to wait for more clear news from the company, they should approach BBIG with caution.
On the date of publication, Joel Baglole 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.
