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Consider Vinco Ventures After an Unexciting Response to Its Fiscal Report

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·4 min read
In this article:
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  • Vinco Ventures (BBIG) recently posted its quarterly financial results, which indicated a firm capital position.

  • Nevertheless, the BBIG stock price hasn’t moved much.

  • Investors should weigh the data points and consider a long position if they envision further progress with Vinco Ventures.

Photo of Lomotif app, owned by Vinco (BBIG), download page on a smartphone,
Photo of Lomotif app, owned by Vinco (BBIG), download page on a smartphone,

Source: shutterstock.com/Postmodern Studio

New York-based Vinco Ventures (NASDAQ:BBIG) is a holding company that’s diversified, but focuses on digital media and content technologies. BBIG stock might seem stuck now, but could get un-stuck in the near future as Vinco Ventures delivered some positive results recently.

Sometimes, Wall Street is hard to please. This can be particularly true during earnings season, when investors often have high expectations. Companies can post positive results, but share prices might barely move at all.

This may have been the case with BBIG stock recently. Vinco Ventures issued a press release featuring the company’s quarterly results and highlighting the progress it has made as an evolving business enterprise.

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Investors might not have been extremely impressed, but of course you’re encouraged to think for yourself and form your own conclusion. At the end of the day, you may decide that Wall Street’s reaction (or lack thereof) doesn’t match the positive quarterly results.

BBIG

Vinco Ventures

$2.58

What’s Happening with BBIG Stock?

So, let’s get down to the nitty-gritty. Vinco Ventures released its results for 2021’s fourth-quarter and full-year 2021 on April 18.

What the investing community should know is that Vinco Ventures is a company in transition. It’s working diligently to become not just another diversified holding company, but a digital media and content technologies company.

In this vein, Vinco Ventures acquired an 80% stake in Lomotif, a social media platform that’s similar to ByteDance’s TikTok but is focused on India.

Not only that, but Vinco Ventures completed its acquisition of AdRizer, which provides “technology solutions that automate the use of artificial intelligence for digital advertising analytics and programmatic media buying.”

Clearly, there’s been a lot going on with Vinco Ventures lately. Still, BBIG stock only recently managed to break above $2.50 since it released its Q4 2021 financial data.

Was the data really all that bad? Don’t just monitor the stock’s price movements and jump to a negative conclusion. Instead, look under the hood and see how Vinco Ventures is doing — you might actually be impressed with the results.

Vinco Ventures Is in Growth Mode

There’s no denying it. Vinco Ventures’ financial results haven’t been perfect. Yet, there are positive aspects that should support a bullish argument.

For one thing, CEO Lisa King observed the company has grown exponentially. At the end of 2020, Vinco Ventures had a market capitalization of around $20 million and total stockholders’ equity of roughly $14 million. As King pointed out, those figures have increased to to over $507 million and $134 million, respectively.

Prospective shareholders should also take note of Vinco Ventures’ capital position, which appears to be solid. At the end of 2022, the company had cash, cash equivalents and restricted cash totaling $187.6 million. Furthermore, Vinco Ventures had $87.6 million in unrestricted cash as of Dec. 31, 2021. (The company wrote “December 31, 2022” in the press release, but we can reasonably assume that this was a typographical error.)

In 2021, Vinco Ventures’ gross profit rose 1.3% to $2.48 million from $2.45 million in 2020. That’s a decent result, considering it is undergoing a major transition.

Perhaps the major sticking point is that Vinco Ventures’ net loss widened in 2021 compared to 2020. Hopefully, the company’s bottom line will show improvement in the upcoming quarters. Overall, though, it’s fair to conclude that Vinco Ventures remains firmly in growth mode.

What You Can Do Now With BBIG Stock

BBIG stock barely broke through $2.50 post-earnings, but this shouldn’t be considered a major problem. Really, it just means you can still buy the shares at a discount.

All in all, Vinco Ventures’ financial results aren’t perfect, but the company is evolving and growing. If you’re so inclined, then, feel free to take a chance on BBIG stock with a small, but confident allocation.

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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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