Last week’s raging bull Vinco Ventures, Inc. (NASDAQ: BBIG) continued its persistent rise well through the weekend, and premarket hours. This charming growth rise, amounting to 22.2% left market participants astonished increasing demand for BBIG and further driving up the price. It was no longer than two weeks ago that the stock was mired by skepticism over its financials, and potential growth. The following week and today’s performance indicate possibly one of the biggest stock winners for March as of yet. Social media chatter indicates that market participants remain optimistic in regards to BBIG. Many of these traders are evidently of the view that BBIG has just started getting hot, and there’s a long upward ride that is still to come.
Social Media Hype and BBIG
The influence social media has held over the BBIG movement has always been significant. The current shoot-up in price has all the hallmarks of a social media originating frenzy. This comes as a result of the volume and suddenness of the growth wave observed.
The Pennsylvania based producer saw a similar hype early last year, relating to its non-controlling stake in Lomotif, a firm holding an attractive video sharing platform, similar to that of TikTok. The growth spurt did not sustain and eventually saw a drive down, given that optimism was based purely on hype. Questions were put forth over the financial fundamentals of Vinco Ventures, and whether or not growth prospects remain feasible. Without clarity in regards to financial sustainability, it comes as no surprise that the hype had soon dissipated. In regards to the current frenzy around BBIG, similar questions continue to surface.
Vinco Spinning off Crypto and NFT Unit
However, this hype does not come in isolation, as in fact linked to the company’s in-process spin off. The value anticipation as a result of the move are evidently high, and investors remain optimistic regarding its growth potential. Specifically, the company intends to spinoff its non-fungible token (NFT) and Crypto unit. The move evidently raises optimism and assures investors that the current growth spurt is not solely based on hype. This is the most likely explanation for the persistent climb over the week, with no sign of an impending collapse.
Conclusion
BBIG has soared massively above other stocks this weekend, continuing its remarkable growth from last week. The stock’s growth typically relates to hype alone. However, the present growth trajectory more likely links to a more fundamental story at play, which is Vinco’s spinoff of its Crypto and NFT unit.
