Vinco Ventures (BBIG) Stock Has Risen 22.7% YTD Despite the Latest Decline. What’s Next?

Trade Vinco Ventures (BBIG) Stock Your capital is at risk
Simon Mugo
Updated: 31 Jan 2022

Key points:

  • Vinco Ventures stock has risen 22.7% this year despite the latest decline.
  • The meme stock’s shares are currently trading at a long-term support level.
  • I would consider buying BBIG stock at current prices, given its potential.

The Vinco Ventures Inc (NASDAQ: BBIG) stock price has risen 22.7% despite the latest downtrend in the daily chart below. As a result, many wonder what comes next for the firm?

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To answer this question, we must first look at the factors that drove Vinco Ventures stock higher in the past and whether these factors are still relevant today.

Vinco Ventures (BBIG) benefitted from last year’s meme stock craze that saw heavily shorted companies on the verge of bankruptcy given a new lease of life.

Also Read: Best Tech Stocks to Buy Right Now.

Companies such as AMC Entertainment and Gamestop rose to meteoric heights as retail investors bought the shares en masse creating short squeezes. They forced the institutions to cover their positions while incurring massive losses.

Finally, retail investors discovered that by banding together, they could upend the status quo on Wall Street and stick it to the hedge funds, investment funds and large banks that control the markets.

These stocks have not been so lucky this year as they have fallen along with the rest of the market. However, Vinco Ventures has bucked this trend, as evidenced by the rally in its share price earlier this month that saw it trade above $5.

Regardless, the rally was short live, and BBIG stock is now trading below $3, as shown on the chart below. In addition, the chart below shows that there is a long term support level at $2.24, which has been in place since January 2021.

As a short term trader and investor, I would keep my eye on this level and buy BBIG shares so long as they are above it. A break below the level would serve as a warning sign, and I would be packing my bags at this point and selling the stock.

Vinco Ventures fundamentals are pretty promising after unveiling plans to list its Cryptyde non-fungible token (NFT) unit, which could generate significant revenues.

Furthermore, Cryptyde also revealed plans to raise $42 million from investors in addition to the IPO, indicating significant demand for its shares and the high value of the business to institutional investors.

The company also owns other tech businesses, including AdRizer, a digital advertising platform, and Lomotif, a video-sharing app that shares many similarities with TikTok.

These businesses could become highly valuable in the future generating vast revenues for Vinco Ventures and could be potential IPO candidates.

Investors betting on Vinco Ventures should find its current price quite attractive since the shares are trading near the long term support level.

*This is not investment advice. Always do your due diligence before making investment decisions.

Vinco Ventures stock price.

IG chart of Vinco Ventures stock price 31-01-2022
Source: Tradingview

Vinco Ventures stock has fallen 8.4% in the past week but is still up 22.7% since the year started.

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