After being suspended from the Nasdaq last month, Vinco Ventures (OTCMKTS:BBIG) stock is still in free fall. The company has been in a race to the bottom this week, shedding more than 70% of its value in the past five days. This type of price action is commonplace for an unstable penny stock that has begun trading on an over-the-counter (OTC) exchange. But time is quickly running out for Vinco.
BBIG stock needs to regain compliance with Nasdaq regulations by Aug. 4 in order to trade on the exchange again. As that date is less than 24 hours away, prospects look bleak for the stock right now. After months of deals collapsing and company board members resigning, the end seems to be approaching for this meme stock.
Does this mean that investors should offload Vinco shares while they still can? Let’s dive deeper into the troubled company and assess the damage.
What’s Happening With BBIG Stock?
Trading has been highly volatile for BBIG stock this morning, as has often been the case recently. Despite some attempts to rally, Vinco hasn’t been able to garner any real momentum. As of this writing, shares are down more than 25%. Given the dark storm clouds on its horizon, there’s no reason for shares to rise, either.
It should be noted that this isn’t the first time Vinco has come close to delisting. Early in 2023, it violated the index’s listing requirements by failing to submit earnings on time. Even before that, the company had received multiple noncompliance notices.
To say this company’s history is checkered would be a severe understatement. While Vinco ultimately managed to remain on the Nasdaq then, it hasn’t been so lucky this time around. Some shareholders have made “Hail Mary” attempts to save BBIG stock from being permanently axed from the Nasdaq before. Now, investors are asking a judge to hear some proposals regarding changes at the company. Per Business Insider:
“One of those lawsuits is from a shareholder group that includes [Shadwrick] Vick, which is making a last-ditch effort to save Vinco’s Nasdaq status. The shareholders filed on Monday for an emergency motion and asked the judge to hear them out by Thursday to avoid a delisting. They’re proposing three options: an emergency motion to appoint custodians for the company, comply with Nasdaq Rules to avoid a delisting, or to appoint a receiver.”
These crusades to keep BBIG stock from being delisted are admirable. But in all likelihood, they won’t make much of a difference. This isn’t the first time that retail investors have tried to save the struggling company. Previous attempts to have new members added to Vinco’s board didn’t help BBIG stock. There’s no reason to suspect that things will be any different now — especially as the company has moved even closer to the edge.
What It Means
As of now, Vinco Ventures’ future hangs in the balance. Unless the company can regain compliance by tomorrow, though, it will face the axe — and that is the more likely scenario. In my view, it’s time for retail investors to move on and cut their losses rather than continue to rally around an unstable meme stock that can’t be saved. Data from ApeWisdom shows that even the r/WallStreetBets crowd is losing interest as the final bell prepares to toll for BBIG stock.
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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.
