Vinco ventures (BBIG) is down more than 21% compared to the same day last week, where it opened at $3.18 and down around 19% since the beginning of this month. BBIG was trading around the $3 mark for most of December, occasionally dipping below $3 – only to rise back up.
The past two weeks haven’t been kind to the stock either. The market-wide sell-off due to the emergence of the Omicron variant has taken a big hit on many stocks.
It’s not all doom and gloom, as nothing has changed fundamentally since September 2021, when BBIG stock sky-rocketed above $12. Although the company reported a wider than expected loss during its Q3 results, the recent issuance of warrants has guaranteed them a $40 million cash injunction that would help to keep them afloat for a while.
Why is it going down?
One of the main reasons BBIG is unable to hold its value during these bearish times is the lack of news from the executive management. Investors are still waiting for more details on the announced Vinco-Zash merger, Cryptyde’s (TYDE) launch date & its share distribution, and Adrizer deal details. And this directly links to the trading volume – which is needed to hold the stock volume. There is not enough volume for the stock to hold its value. There was only one day in December 2021 where BBIG had more daily volume than its average volume of 27.06 million.
Moreover, Vinco is also a victim of heavy shorting. The exchange reported Short Interest is at an all-time high of 24.73% of the free float (30.38 million shares) as of December 15th, 2021. The short interest would likely have gone up further from the current stock’s performance. The alarming thing is that shorts weren’t covered during the September fiasco – when the stock went from $2.8 to $12.49.
So What Now?
Till Vinco provides an update on the much-awaited deals and Cryptyde’s launch/distribution date, the bearish pattern would likely continue (although this is not a guarantee). Q1 2022 will be very interesting to see which direction Vinco will take – Most likely on the upside. As mentioned before, Vinco is a high-risk, high-profit stock and is not for the faint-hearted.