- NASDAQ:BBIG falls for a third consecutive day as Fed hints at tapering
- Meme stocks fall hard as September volatility continues to hit the sector.
- Vinco Ventures is still believed to be one of the best chances for another short squeeze.
Update September 23: NASDAQ: BBIG fell for the second straight day on Wednesday and eroded another 2.95%, ending the day at $6.57, still off the three-week troughs of $5.93 reached a session before. Shares of Vinco Ventures bucked the broader uptrend on Wall Street, as China Evergrande optimism overshadowed the hawkish Fed outcome. BBIG shares remained under heavy selling pressure, as investors remain wary ahead of the October 15 deadline, when shareholders will vote on the proposal for company spinoff Cryptyde to operate as its own publicly traded entity.
NASDAQ:BBIG extended its declines from late last week as the meme stock was unable to reverse its recent downward trend. On Monday, shares of BBIG fell by a further 6.31% to close the bloody session at $7.28. It wasn’t just Vinco Ventures that fell hard on Monday as all three major indices had their worst session since May. The Dow Jones fell by 614 basis points, the S&P 500 dropped by 1.7%, while the NASDAQ hit freefall and lost 2.19% during the session. There were several macroeconomic factors including the upcoming Federal Reserve meeting, the Chinese Evergrande scandal, and the government gridlock over the National debt ceiling in the United States.
Whenever there is volatility in the markets, the meme stock sector seems to be front and center. On Monday, other meme stocks fell alongside Vinco Ventures, including AMC (NYSE:AMC) which dropped by 8.85%, GameStop (NYSE:GME) declined by 6.23%, and ContextLogic (NASDAQ:WISH) lost 7.19%. After seeing the daily trading volume surge last week, BBIG activity fell on Monday to a volume of 27 million shares, compared to the short-term average volume of nearly 45 million shares per day.
BBIG stock forecast
Despite this recent volatility, Vinco Ventures remains one of the most popular choices for a short squeeze amongst retail investors. Currently the stock has a short interest of 33%, as well as a borrow rate of nearly 50%. According to stock market data platform Fintel, 53 new institutions opened up positions in BBIG, so there could be more fireworks upcoming for the blockchain related company.
Update: NASDAQ: BBIG was unable to take advantage of the positive mood ruling Wall Street and fell for a third consecutive day. The share settled at $6.57, after shedding 2.95%. US indexes closed in the green, with the Nasdaq Composite up 150 points or 1.02%. Stocks trimmed part of their early gains after the US Federal Reserve announced its latest decision on monetary policy. As widely anticipated, the central bank left its current policy unchanged, but hints on tapering were clearer. Even further, the dot plot showed higher chances for a 2022 rate hike.
Update: NASDAQ: BBIG came under heavy selling pressure and reached the lowest levels in three weeks below $5.93 before recovering some ground to finish at $6.77. Shares of Vinco Ventures still lost 7% on the day. Growing China Evergrande fears and expectations of the Fed’s stimulus withdrawal kept the market sentiment undermined, collaborating with the downside in the stock. Investors ignored the upbeat news that Vinco Ventures and Emmersive Entertainment launched their first NFT streaming movie soundtrack. The ongoing downtrend has reversed this month’s gains, as BBIG moves further away from the monthly tops of $12.49.
Update: NASDAQ:BBIG remained under strong selling pressure on Tuesday, ending the day down 7.01% at $6.77 per share. Wall Street started the day with a strong footing, following the lead of its overseas counterparts, but shed ground as the day went by. The Dow Jones Industrial Average finished the day in the red, down by 49 points, while the S&P posted a modest 0.17% advance. The Nasdaq Composite managed to add 32 points, still down for the week.
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