There’s a great deal of controversy surrounding today’s stock market. But one that’s less controversial and simply a more clear-cut losing proposition going forward is Vinco Ventures (NASDAQ:BBIG).
Some will dismissively call it a dead cat bounce. Others will say don’t rush to judgment as the price action also sets up a bullish and critical confirmed rally. I’m referring to this past week’s huge percentage gains in the broader market following fresh corrective and bearish cycle lows in 2022. Then there’s BBIG stock.
Despite the Nasdaq’s 7% price increase buoyed by outsized bids in Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Costco (NASDAQ:COST), Marriott International (NASDAQ:MAR) and others, BBIG stock tumbled just over 15% on the week.
So, what gives in Vinco Ventures? Let’s look off and on the price chart at BBIG stock and figure out why, regardless of what’s happening elsewhere on Wall Street, the tide has turned against owing Vinco Ventures in any shape or form.
No Big Deal in Vinco Ventures
Vinco Ventures does all the best things, on paper at least. From blockchain, to the metaverse, short-form social media video or AI-driven advertising analytics, BBIG stock has its hands full with some of investors’ favorite buzz words and hopeful markets.
As we’ve seen this year though, Wall Street is more demanding of unproven growth narratives like Vinco Ventures where the only consistency has been in manufacturing enticing press releases and crummy fundamentals. And today BBIG stock is making things worse as its debut into a burst cryptocurrency market has been delayed.
In a nutshell, Vinco’s blockchain subsidiary Cryptyde aims to leverage smart contract technologies in consumer-based Web 3.0 markets. It’s a pending spinoff in which current BBIG stockholders of record on May 18 receive one share of Cryptyde’s “TYDE” for every ten shares of Vinco Ventures owned.
However, the distribution date was delayed last week from May 27 to a vague “sometime in the second quarter” due to “contractual and regulatory conditions.” Nothing like waiting until the last minute, right?
BBIG Stock Isn’t Bigger Than Its Meme Stock Past
Source: Charts by TradingView
Shareholders of record certainly didn’t enjoy the news from Vinco Ventures. The delay singlehandedly caused BBIG’s stock market-bucking price pressure in shares last week. And today, while the broader averages pause and investors wait to make their next move, BBIG is down another 4.7%. Oh no, right? Maybe not.
On the Vinco price chart, the writing isn’t entirely on the wall for bullish investors to throw in the towel. As the illustrated weekly chart shows, shares have formed a modestly positive higher-low pattern since March’s $1.94 undercut of a double bottom formed off $2.16 in BBIG stock. What’s more, the price action is supported by a similarly trending stochastics setup.
Importantly, bullish BBIG investors still have their work cut out for themselves. And it may be too much to overcome in the long run.
While the stochastics indicator is moving higher, it’s also bearishly crossed in neutral territory. Also troubling, May’s confirmed pivot high failed beneath BBIG’s former 76% retracement level. Lastly, a textbook higher-high pattern to further validate a new bullish trend did miss that positive achievement by a couple pennies.
BBIG Stock Is No APPL Stock
Given the ambiguity of BBIG stock on the price chart and bearish short interest of 17%, it’s possible there’s even less to this $544 million small-cap than meets the eye. Given the meme stock implosion over the past year, Vinco Ventures is a speculative waste of time and resources in my estimation.
There’s always a chance that I’ll be proven wrong and both BBIG stock and TYDE become more than a hustle. Not today, however. And for that matter, not last Thursday and not likely “sometime in the second quarter” either.
Bottom-line though, if you’re prone to making lottery bets and can’t be dissuaded from owning BBIG past its meme expiration date, keep the wager small enough as to not make an insurmountable hole which takes away from other core portfolio holdings that investors can and should buy more confidently on weakness.
On the date of publication, Chris Tyler does not hold (either directly or indirectly) any securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.