The next short squeeze may be approaching quickly. In the past, Vinco Ventures (NASDAQ:BBIG) has continuously failed to garner momentum, demonstrating a pattern of instability. The tech and media holding company recently implemented a reverse stock split, quickly sending shares of BBIG stock into free fall.
This week, however, BBIG is off to a great start. As of this writing, shares are up 20% for the day and show no signs of slowing down. Data strongly indicates that this unprompted growth is due to the increasing possibility of a Vinco short squeeze.
With key metrics suggesting that the squeeze has already begun, BBIG is in full focus as retail investors shift into battle mode. But of course, investors have to ask one key question: How high can a short squeeze actually take this stock?
A Closer Look at the BBIG Stock Short Squeeze
It has been months since Vinco Ventures has had anything positive to report. In fact, BBIG stock has shed almost 50% of its value over the past month and fallen more than 80% over the past six months. That’s far from an encouraging growth trajectory. As is often the case with meme stocks, BBIG now seems to have been flagged as the next big short squeeze. So, let’s take a closer look at the data behind shares.
According to Fintel, there are currently no shares of BBIG stock “available to be shorted at a leading prime brokerage.” Three days ago, short shares available according to Fintel dropped down to zero. While the figure rose back to 2,000 later on May 19, the figure is back down to zero as of today.
BBIG currently boasts a Fintel “Short Squeeze Score” of 92.07 out of 100. Short interest accounts for more than 325% of its float while short investors have 85.24 days to cover their positions
This information strongly points toward a BBIG stock short squeeze. In fact, the current trajectory of Vinco shares suggests that a squeeze has already begun. Yet, while today’s growth is impressive, BBIG still has only just surpassed $2.50 per share. Even if the squeeze continues, shares aren’t likely to grow too much more before they come crashing down again.
On the date of publication, Samuel O’Brient did not hold (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.