Headquartered in New York, Vinco Ventures (NASDAQ:BBIG) is a holding company that’s diversified but tends to specialize in digital media and content technologies. At its current price point, BBIG stock deserves investors’ attention as long as they understand the risk-to-reward scenario.
When a stock gets near the bottom of its defined range, dip buyers can come in and grab the shares that other traders are selling. If the stock is low-priced, the snap-back effect can be like a slingshot – fast and powerful.
At the same time, prospective investors should “know what they own” and always understand a company’s business model. In the case of Vinco Ventures, the business model appears to be working well, and a recently finalized acquisition could enhance Vinco’s value even further.
| BBIG | Vinco Ventures | $2.235 |
What’s Happening with BBIG Stock?
BBIG stock was recently spotted trading near the $2 level. We’ve seen this price action before, as the stock has bounced from around $2 on multiple occasions. In the past, it has rallied to $3, $5 or even $10.
Why are the shares trading near the bottom of the range? Possibly, it’s because Vinco Ventures delayed the distribution date for its spin-off of Cryptyde, Vinco’s non-fungible token (NFT) unit.
This could be a temporary hold-up, so there’s no need to panic-sell your BBIG stock if you already own it. Instead of obsessing about Cryptyde, perhaps prospective investors should focus on AdRizer, which Vinco Ventures acquired this year. AdRizer provides technology solutions that automate the use of artificial intelligence (AI) for digital advertising analytics and programmatic media buying, according to Vinco Ventures.
As Vinco Ventures CEO Lisa King explained, the AdRizer acquisition will advance one of the “core pillars” of Vinco’s strategy. Specifically, AdRizer will help the company “monetize traffic throughout the digital media spectrum and across the Vinco ecosystem.”
More Milestone Moments
The finalizing of the AdRizer acquisition is notable, but there are other accomplishments that investors should know about. In March, Vinco Ventures live-streamed the Okeechobee Music and Arts Festival on March 3-6, 2022 on the Lomotif platform.
Amazingly, the live stream registered 7.2 million active users on Lomotif and generated 16 million visitors on Lomotif media sites. Separately, Vinco Ventures successfully live-streamed Shaquille O’Neal’s Big Game Weekend Party “Shaq’s Fun House” on the Lomotif platform.
On the financial side, Vinco Ventures demonstrated 349.7% year-over-year revenue growth during the first quarter of 2021. In that quarter, Vinco generated $11.5 million in revenue.
Furthermore, the company had a firm balance sheet as of March 31, 2022, with cash, cash equivalents and restricted cash totaling $210.8 million.
What You Can Do Now
In time, investors will get to see how the AdRizer acquisition will enhance Vinco Ventures’ value. For the time being, they can observe Vinco’s progress and consider holding some BBIG stock shares.
Just don’t go overboard, and think about scaling into a moderately sized position slowly. After all, the Vinco Ventures share price is known to change quickly at any given moment.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.