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Vinco Ventures (BBIG) Stock Is Down 15.8% On Cryptyde Spinoff. What’s Next?

Simon Mugo trader
Updated 5 Jul 2022

Trade Vinco Ventures (BBIG) Stock Your capital is at risk

Key points:

  • Vinco Ventures (BBIG) stock is down 15.8% after the Cryptyde spinoff.
  • Investors expected the downtrend, but how far can BBIG shares fall?
  • Are BBIG shares a buy? Read on to find out.

The Vinco Ventures Inc (NASDAQ: BBIG) stock price has fallen by 15.8% in the past week following the long-awaited spinoff of Cryptyde, now trading on the Nasdaq under the TYDE ticker symbol.

For many retail investors, the question is what comes next for BBIG stock after separating from Cryptyde. According to the company, Vinco Ventures (BBIG) will continue developing digital media and content technologies.

Also read: 12 Best Shares To Buy As A Beginner.

Vinco Ventures stock is trading far from its all-time high of $8.50 set in September 2021 at the height of the meme stock craze when retail traders bid up multiple stocks in response to institutions that had shorted stocks in what became known as the meme stock craze.

However, the popular meme stocks have not done well this year as investors rotated out of growth to value stocks as stock market indices fell. One of the significant milestones achieved by Vinco Ventures was the acquisition of AdRizer, announced in October 2021.

BBIG said it had completed the acquisition in February 2022 for a cash consideration of $38 million and the issuance of up to 10 million Vinco Venture shares issuable on January 1, 2024. Vinco retained its AdRizer business and will continue benefitting from the revenues generated by the ad tech company.

When the deal was first announced in October 2021, AdRizer was expected to generate up to $62+ million in revenues in the current financial year before the acquisition. However, the revenue estimates for this year are unknown, and investors will be waiting for an update on the same from Vinco Ventures.

The latest move by Vinco Ventures to spinoff Cryptyde is behind the company’s latest decline as the split was expected to come into effect on May 27, 2022, but was delayed and came into effect on June 27, 2022.

Many will be watching Vinco’s and Cryptyde’s following earnings results for clues as to how the two companies are faring as standalone businesses. Meanwhile, I am staying away from both firms despite the likelihood of missing out on a spike higher, which tends to happen with meme stocks.

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

BBIG stock price.

BBIG stock price 05-07-2022
Source: Tradingview

The BBIG stock price has fallen 15.8% in the past week after spinning off Cryptyde. What’s next?

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading