What’s Going On with Vinco Ventures’ Stock?

Why did Vinco Venture’s Stock Skyrocket Yesterday?

Vinco Ventures saw its stock price soar yesterday, but what exactly is driving this rapid growth and should you look to buy into the hype?

Consumer product and digital marketing company Vinco Ventures (NASDAQ: BBIG) has been the subject of some unusual trading behavior after soaring by over 27% yesterday. The stocks’ price has more than doubled in the past five days, but despite this has not seen too much coverage among wider Wall Street circles. 

One platform has taken notice though, and it could be what’s making all the difference. I’m, of course, talking about Reddit. 

Why is Vinco Ventures’ stock up so much?

Vinco Ventures has a history of short-squeezes and, as such, has attracted the attention of Reddit’s extremely active r/wallstreetbets investing community. While not quite at Gamestop or AMC levels just yet, the small-cap company has certainly entered meme stock status after becoming one of the top five most talked about tickers on Reddit over the last week.

Rumors are also swirling about a potential cryptocurrency-related spinoff company emerging from Vinco. The firm increased its blockchain offerings last year by offering NFTs on its platforms. In late August, news broke that crypto acquisitions company Cryptyde would be spinning off from Vinco to become its own public entity.

Very little has been heard about Cryptyde since, but fresh speculation this week has predicted an impending public launch. The firm is expected to trade under the ticker symbol TYDE. The combination of high short squeeze potential and an impending entry into the world of cryptocurrency has sent Vinco stock soaring. Expect the stock to remain extremely volatile over the next number of days until more concrete news appears.

Should I buy Vinco Ventures’ stock?

Extreme caution is advised when it comes to Vinco Ventures. While the allure of getting in early on the next Gamestop or AMC-esque short squeeze is definitely tempting, we’re unlikely to see anything close to early 2021’s events happen again.

Exposure to the burgeoning crypto market is a much more concrete appeal, however, the future of Cryptyde is still very much shrouded in mystery. While the wheels definitely seem to be turning, with its website now live but far from finished, the company has still not revealed any details about a launch date or public offering.

Until more details become available, it would probably be best to avoid. Vinco Ventures is an extremely volatile, small-cap company that has become subject to the whims of Reddit’s notorious investors. While it could definitely become a more promising investment once its crypto capabilities go live, for now, it seems like a stock to watch as opposed to a buy.

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