After a wild start to 2022 that saw it reach a peak of $5.49, Vinco Ventures (NASDAQ:BBIG) only has a 14% gain on a year-to-date basis to show for its efforts. However, with a loss of nearly 6% on the April 7 session and a pre-market downgrade to the tune of 2%, even hardened speculators must consider whether they want to be involved with BBIG stock.
Perhaps InvestorPlace contributor Chris Tyler best described Vinco when he stated “Once a meme, always a meme.” As Tyler and many others readily acknowledge, BBIG stock has had its moments. Plenty of the trades popular among young investors during the post-coronavirus period have had theirs as well. But the question is whether or not BBIG can be trusted for the long haul.
“Blockchain. The metaverse. AI-driven advertising analytics for business. Mergers. Vinco Ventures has a lot seemingly going for it. At least on paper.” But a shotgun blast of exposure to certain sectors — no matter how relevant — can only take you so far. As my colleague mentioned, “BBIG is promising everything and delivering nothing … so far.”
While Vinco’s misadventures don’t guarantee that it will continue falling short, the fundamentals don’t provide much encouragement. That’s according to our own Stavros Georgiadis, who laid into the myriad problems impacting BBIG stock. Key among them is that the underlying company “shows a huge operating loss of $40.88 million and a net loss from continuing operations of $783.48 million.” That’s against revenue in the first three quarters of 2021 of only $7.4 million.
If that wasn’t enough to make you reconsider your prospective trade on BBIG stock, very few key financial metrics point in the positive direction. Another worrying statistic that stands out is the Altman Z-Score, which at 9.5 to the red indicates an organization that is deeply distressed. Put another way, bankruptcy over the horizon for Vinco isn’t out of the question unless the framework changes quickly.
Presumably, most investors are not looking at BBIG stock as a long-term holding but rather a short-term pull of the slot machine’s lever. Even then, unless you’re an expert in behavioral analytics, you’d best be served avoiding this flawed company.
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On the date of publication, Josh Enomoto 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.