Vinco Ventures Stock News and Forecast: After opening up 16%, BBIG traders take profit

UPDATE: BBIG opened up 16.6% on Wednesday at $3.51 but could not sustain such an effervescent start to the session. The opening price placed the meme stock up near where it had faced resistance on Friday, January 21. The stock sold off quickly as its army of retail traders took profits but remained in positive territory for the first two hours of trading. At the time of writing it is trading at $3.17, up 5.3%.

We spoke quite a bit about Vinco Ventures (BBIG) last week and the week before. While news flow is uncertain, speculation certainly is alive and well in this name as it manages to outperform some other notable meme stocks. BBIG shares surged from $2.45 to $5.49 in a matter of days before falling sharply back to $3 this week. Now social media mentions are rising again, and that may lead to another price spike. Caution as ever is warranted with such a high-risk name.

Vinco Ventures Stock News

Vinco Ventures is a tech holding company that has recently lined up a spinoff of its blockchain and crypto subsidiary Cryptyde. The stock will trade under the ticker TYDE, according to an SEC filing back in November. We should note there has been no more official announcement of the spin-off date, but this has not stopped traders speculating that it is imminent. Holders of BBIG stock will get a one-off dividend bonus of 10 for 1 TYDE shares when the listing goes through. This is what caused the recent share price spike in BBIG. Traders were circulating news of proposed employee hires for TYDE as well as outlining one of the more favoured tactics by attempting a short squeeze. Momentum duly picked up as the share price spiked, but as is most often the case that momentum faded as the last of the crowd rushed in. The stock naturally fell back.

We also note the SEC filing showing a director sold 100,000 shares near the top of the recent price spike at $5 to 5.01. Historically, insider purchases have more effect on stock prices than sales, but it is worth being aware of.

Source: SEC filing

Vinco Ventures Stock Forecast

Bottoming out earlier than the previous low does put in place a higher low, which is technically an uptrend. However, with something so volatile and momentum-driven, technical analysis is not as strong. We note increased mention of the name this morning with multiple mentions of an imminent short squeeze. This is an old retail tactic now and should see momentum build. Increased momentum as mentioned usually leads to price appreciation in penny stocks (a penny stock is usually defined as those under $5). Just beware that when momentum fades so too will the stock pice in all likelihood. This is high risk, so use appropriate risk management.

BBIG stock chart, daily

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