Vinco Ventures Stock News and Forecast: Why is BBIG stock on the move again?
- BBIG stock is back on the retail investor horizon as it pops again.
- Vinco Ventures has seen huge volatility in the past as a meme name.
- BBIG stock is still well below the previous meme spike in 2021.
Vinco Ventures (BBIG) stock is back trending across many social media and financial news platforms again, having shied away from the limelight pretty easily the last time around. To recap, Vinco Ventures is a tech company that looks to buy or invest in the latest tech consumer products. This has led it to invest in crypto-related assets, Non-Fungible Token (NFTs) ventures, as well as other areas in blockchain.
One could make the argument it is very diversified with multiple possibilities. Or if you prefer, the bearish argument might say it is scanning around trying to catch the next big thing and join the hype. Crypto and NTFs certainly generate a lot of hype and discussion on social media, and other stocks have looked to cash in. GameStop (GME) and AMC have launched NFT ventures, and both are meme stock kings.
Vinco Ventures Stock News
BBIG stock topped out at over $12 in September of last year. Since then it has been one-way traffic, and BBIG is now trading under $3. That is despite yesterday's 23% pop! Now a gain of that amount will get retail traders talking, and that is certainly the case this morning. Can this momentum be sustained and built on? That is the most important question when dealing with retail and meme stocks since valuation metrics do not really apply.
The reason for yesterday's acceleration is not clear, but from gleaning through social media chatter the focus appears to be on Vinco's spin-off of its Cryptide business. Cryptide is another acquisition vehicle that will specialize in the blockchain area of business. Social media was alight yesterday with news of Cryptide staff hires and the development of a website. It does make you wonder about the current market environment we find ourselves in when such developments lead to a 23% pop in the share price. Oh well, speculation is alive and well then.
BBIG does have a potentially serious app already in use called Lomotif. Lomotif is a video sharing site that reportedly has 31 million monthly active users. Fortune named Lomotif as one of five up and coming apps with Generation Z.
Vinco Ventures Stock Forecast
Since I think we have established that this is another highly speculative name, please only risk money you can afford to lose. We have already seen the share price crumble.
Support has come from old lows at $2.11, so for now this has held and put in a strong bounce. If the low at $1.92 breaks, then we would expect BBIG to move to sub-$1.50. Resistance at $3.61 is the first level to confirm the nascent uptrend established and see if this is a dead cat bounce or some new trend in place. The move is not yet strong with the Relative Strength Index (RSI) below 50, but the Moving Average Convergence Divergence (MACD) is crossing over. The short-term trend is bullish, but $2.50 is the pivot. Get out below in our view.
BBIG chart, daily
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
