Diversified holding company Vinco Ventures (NASDAQ:BBIG) hasn’t been a darling on Wall Street lately. However, this means that BBIG stock is trading at a more attractive price point. This could be the right time to make an investment as Vinco Ventures is in a firm capital position.
Due to a number of complications in 2022’s first half, it wasn’t easy for shareholders to stay in the trade with Vinco Ventures. Technology-related stocks certainly weren’t in favor. Also, growth stocks took a back seat to older, value-centered names.
On top of all that, BBIG stock was slapped with the meme-stock label last year. The meme trade unraveled a while ago, but this doesn’t mean that it’s time to just give up on Vinco Ventures. Indeed, there’s upside potential here as Vinco emerges as a strong digital-media technology competitor.
|BBIG||Vinco Ventures, Inc.||$1.06|
What’s Happening with BBIG Stock?
Back in the meme-stock heyday, BBIG stock briefly ran above $8. This euphoria wasn’t meant to last, however, and the Vinco Ventures share price recently returned to around $1.
We’ve seen this story before. Vinco shares traded at around $1 in late 2020. Soon, they tripled in price. Bear in mind that this is a volatile stock that’s susceptible to swift moves. That’s why it’s not advisable to take a massive long position.
Still, if you’re willing to moderate your position size, then you can have an adventure with BBIG stock. There have been multiple 2x and even 3x share-price moves over the past several years. Could another one be just up ahead?
Anything’s possible in the world of low-priced stocks, really. What’s out of favor today could be the talk of the town in 2022’s second half. Besides, Vinco Ventures is a fascinating and truly unique holding company. Vinco’s brands run the gamut from Uber Mom and 911 Help Now, to 4keeps Roses and Best Party Concepts.
The Crown Jewel
Perhaps the crown jewel among Vinco Ventures’ holdings, however, is a Singapore-based video-sharing social networking platform called Lomotif. ZVV Media Partners, Vinco’s joint venture with ZASH Global Media and Entertainment, owns an 80% equity interest in Lomotif.
When we describe Lomotif, it should sound very familiar. It “allows its users to create their own music videos by selecting pictures and videos from the camera, mixing them up with music and automatically transforming clips into music videos.” In other words, Lomotif could be the next Tiktok, and we all know how successful that app has been.
Turning to the financial side of the equation, Vinco Ventures has a couple of positive data points worth noting. First and foremost, the company’s capital position appears to be firming up. At the end of last year, Vinco had cash and cash equivalents totaling around $87.6 million. Fast-forward just three months later, and that total ramped up to approximately $130.8 million.
Plus, here’s another bullish fact to consider. During 2021’s first quarter, Vinco Ventures generated roughly $2.2 million in revenue. However, the company demonstrated year-over-year growth in the first quarter of 2022 as the company took in revenue of around $3.8 million.
What You Can Do Now
Bulls and bears should both acknowledge that Vinco Ventures is a company like no other. Vinco’s subsidiary businesses are diversified and each one is interesting in its own right. Of particular interest, though, is Lomotif since it could capture a large young audience.
Moreover, Vinco Ventures appears to be growing its revenue and capital position. In this light, BBIG stock can offer fast moves for bold investors as long as they’re right-sized in their share positions.
Vinco Ventures currently scores a “B” on my Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.