- 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.
Stay up to speed with hot stocks' news!
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.
Previous updates
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.