Vinco Ventures (NASDAQ:BBIG) is an acquisitions company that focuses on digital media and content technologies. The company was founded in 2017 and went public just a year later in 2018.
BBIG stock has frequently touted its B.I.G. business model, which stands for Buy, Innovate, and Grow. Essentially the company acquires other businesses with high potential in the digital media space and then uses innovation to grow and scale the business further.
Vinco Ventures currently has a huge portfolio consisting of over thirteen brands such as Human Earth, Uber Mom, SRM Idea Lab, and more. Vinco Ventures primarily operates in North America, Europe, and the Asia-Pacific. For a penny stock valued at a market cap of $550 million, BBIG has large ambitions.
Vinco Ventures has been swinging wildly over the past week due to high volumes of trading and its popularity on social media platform Reddit. The stock has jumped approximately 145% over the past month and the only relevant question is whether the company’s fundamentals can justify its current value.
BBIG stock provides you exposure to NFTs
Through its subsidiary Emmersive Entertainment, Vinco Ventures has launched an NFT platform called E-NFT that aims to be a platform through which users can purchase NFT products especially music.
The platform will also allow the reselling of NFT products which could spark a new market for NFT trading. This could also help users of the platform profit from a rise in prices of pre-owned NFTs. The NFT app has been made available for download through both Android and iOS marketplaces.
With the sudden growth in the NFT market which took place in 2021, this seems like an area of high potential BBIG stock. However, many analysts are also forecasting that the NFT bubble will pop soon which might drive the stock lower.
Unpromising financials might weigh on BBIG stock
Vinco Ventures is gaining traction among retail investors on Reddit but you need to look at the company’s financials before making an investment decision. Vinco’s loss margins have only increased over the past year. The company saw a total operating loss of $4.97 million in the second quarter of 2021. In comparison, its total operating loss was only $1.21 million during the second quarter of 2020.
BBIG also witnessed an increase in loss per share which widened to $5.13 in the second quarter of 2021. Further, Vinco’s revenue saw a significant dip caused by the waning sales of PPE from its Edison Nation subsidiary.
Vinco Ventrues: Latest acquisition
Vinco Ventures was recently in the news for acquiring Lomotif, an upcoming social media company. Lomotif operates as a short-video platform sourced from users. The company’s business model is similar to TikTok which raises concerns over the future potential of the company since the space is already dominated by the latter.
On the flipside, Vinco Ventures is looking to expand into India. A market where TikTok is banned and this move could help Lomotif find a market for its services.
Vinco Ventures currently owns approximately 80% of Lomotif, which means that their exposure in the company is quite significant. The acquisition works well with the other digital media brands in Vinco Venture’s portfolio.
Vinco Ventures has a promising business model. The company’s focus on digital media may help drive revenues as the industry grows over the long term. BBIG has dipped its toe into a lot of waters, and even one standout performance could see the stock becoming a multi-bagger.