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Quick: can you guess 2021’s most-visited website? Believe it or not, the answer is social media app TikTok. That’s an important point if you’re considering a position in New York-based Vinco Ventures (NASDAQ:BBIG), as a recovery for BBIG stock could depend on the success of a TikTok-like platform.
Source: shutterstock.com/Postmodern Studio
Just to get everyone caught up, Vinco is a company that seeks to buy, innovate, and grow tech-enhanced businesses. Vinco Ventures is in a transitional phase, as the board is changing the company’s name to ZASH.
It is a highly diversified business. For example, Vinco subsidiary Cryptyde recently launched a joint venture known as CW Machines LLC with cryptocurrency mining equipment and services provider Wattum Management.
There’s definitely a lot to unpack when it comes to Vinco Ventures. So, let’s start with some quick technical analysis to see if there’s a bargain to be had here.
BBIG Stock at a Glance
Indeed, bargain hunters should be on the lookout for BBIG stock as it was recently spotted trading at a crucial support level. In early January 2022, the stock was fairly close to $2.50. That’s where it was trading in May of 2021 before the stock popped to $5.25 in June.
Furthermore, BBIG stock was near $2.50 in August before it hurtled to a 52-week high of $12.49 in September. There’s no guarantee of another rebound, but the reward-to-risk profile looks good when the stock gets down to $2.50.
Don’t get the wrong idea — we’re not telling anyone to wager their life savings on Vinco Ventures. The idea is to consider a small position and then possibly add to it if the stock declines.
Let’s Talk TikTok
When TikTok was launched in 2016, few people imagined that the app’s dance and lip-syncing videos would propel the platform to its current level of popularity. Yet, reality is stranger than fiction sometimes. From makeup tips to cooking demonstrations, the content shown on TikTok attracts over one billion monthly active users worldwide.
In other words, you don’t have to like TikTok or even understand it to appreciate its revenue-generating prowess. Hence, it makes sense that the “next TikTok” could be a serious moneymaker.
There’s a connection to Vinco Ventures here, though it requires a bit of explanation. First of all, Vinco holds a number of investments through ZVV Media Partners (a joint venture of Vinco Ventures and ZASH Global Media and Entertainment).
These investments include an 80% stake in Lomotif, as well as full ownership of AdRizer — but we’ll get to AdRizer in a moment.
Lomotif is a video sharing site that’s similar to TikTok. Vinco Ventures states that Lomotif has more than 31 million on-platform monthly active users.
A Global Platform
In other words, Lomotif isn’t some unknown entity. It’s an established app that already has a deep user base. Plus, Vinco Ventures is aggressively promoting Lomotif, not only in the U.S., but also in India. There are international aspirations here, as Vinco Ventures Chief Executive Officer Lisa King described Lomotif as “a global, pure play videosharing social networking platform.”
Along with Lomotif, prospective investors should consider the impact of AdRizer. That’s a publisher and analytics solution with a focus on revenue attribution, which ZVV Media Partners announced its intention to acquire.
Reportedly, AdRizer will be integrated in the Lomotif platform for ad placement revenue. Advertisers, according to the press release, will be able to “schedule their ad buys across Lomotif’s Audience Network which allows Lomotif to monetize social traffic in all parts of the world where it has users.”
The Takeaway on BBIG Stock
It might take some time to untangle all of Vinco Ventures’ investments, deals, and partnerships. However, it’s worth the effort to understand all of Vinco’s current and potential revenue sources.
Among the most promising income sources for Vinco is Lomotif. It’s not as popular as TikTok, but Lomotif could present a similar, ground-floor opportunity.
At the same time, you might have a chance to catch BBIG stock near a crucial support level. If so, you could get reduced-price exposure to a diversified business — and just maybe the “next TikTok.”
Vinco Ventures currently gets a “B” rating in my Portfolio Grader.
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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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