Is Vinco Ventures (BBIG) the next GameStop?

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Is Vinco Ventures (BBIG) the next GameStop?

BBIG stock price analysis
Image source: © Jirsak | Megapixl.com
Highlights:
  • Vinco Ventures operates several consumer and digital marketing brands, and it changed its name to Zash.
  • It seems that the BBIG stock is primed for a short squeeze, and its popularity on social media platforms like Reddit could be contributing to the price surge.
  • Since the past week, the BBIG stock has catapulted by about 122 per cent, which is a significant rise.

Stocks of Vinco Ventures Inc. (NASDAQ:BBIG) jumped 27.5 per cent on Tuesday, January 17, and closed at US$ 5.19 per share.

The BBIG stock has been making sudden jumps since the past few trading sessions, and there is no company-specific news that could have led to the sudden price surge.

Since the past week, the BBIG stock has catapulted by about 122 per cent, and that is a significant rise when there is no news to boost investors' confidence.

Also Read: DTST skyrockets: Is Data Storage a rallying meme stock?

Vinco Ventures operates several consumer and digital marketing brands, and it changed its name to Zash in October last year. However, this change is yet to reflect on financial platforms.

Why is BBIG stock witnessing a price surge?

It seems that the BBIG stock is primed for a short squeeze, and its popularity on social media platforms like Reddit could be contributing to the price surge.

Reddit is known to have positively influenced companies' share prices with poor fundamentals. Stocks of such companies were called meme-stocks in 2021.

In January 2021, Reddit broke the internet when shares of GameStop (NYSE:GME) surged more than 400 per cent in a week.

BBIG Stock                                                                                                ©2022 Kalkine Media® 

By April, GME stock had returned 800 per cent to the shareholders without any announcement of significant development from GameStop.

Due to a group named r/WallStreetBets, the share prices of GameStop kept increasing throughout the year.

Now, it seems that the BBIG stock has caught the attention of retail investors on Reddit, and they could be behind the rally.

Bottom line

In November last year, Zash announced that its subsidiary Cryptyde launched a joint venture with Wattum Management, a Bitcoin mining equipment and services supplier worldwide.

Investors could be hoping that the growing popularity of cryptocurrencies will likely help Zash grow in future through its subsidiaries.

As of September 30, 2021, the company's cash and cash equivalents stood at US$ 49.94 million. Meanwhile, in Q3 2021, Zash's net loss increased to US$ 542.5 million from US$ 2.8 million in Q3 2020.

Also Read: GameStop, BlackBerry & AMC soar: Are meme stocks making a comeback?

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