Shares of Vinco Ventures (OTCMKTS: BBIG ) stock closed higher by 127% today and were up by as much as 7,150% during afternoon intraday trading. Still, shareholders shouldn't place too much hope on today's gains.
Former Federal Deposit Insurance Corporation Chair Sheila Bair recently noted that, during the Federal Reserve's era of zero interest rates, “money (flowed) into all sorts of unproductive uses,” including “zombie companies.” In other words, firms that were generating little or no revenue and had meager chances of ever becoming profitable could stay afloat by convincing investors and lenders to provide them with cheap money.
After months of struggling, another meme stock is biting the dust. Indeed, after a long, complicated journey of volatility and watching shares fall, Vinco Ventures (OTCMKTS: BBIG ) stock has been delisted from the Nasdaq.
Vinco Ventures (OTCMKTS: BBIG ) stock is plunging lower following a Business Insider report that stated the company has until today, Aug. 4, to regain compliance or to file a hearings panel review request with Nasdaq. Failure to comply with these actions will result in delisting.
Earlier today, attorney Mark R. Basile gave Vinco Ventures (OTCMKTS: BBIG ) stock fans reason for hope.
On July 14, Vinco Ventures (OTCMKTS: BBIG ) received a delinquency notice from the Nasdaq. As InvestorPlace's Eddie Pan reported, this grim warning came with very bad news.
It's no secret that small-cap stocks have been on fire lately. With the iShares Russell 2000 ETF NYSE: IWM up close to 10% on the quarter and the overall market trading near 52-week highs, it's become a risk-on environment, and capital has quickly been flowing into traditionally higher-risk stocks like small caps.
Shares of Vinco Ventures (NASDAQ: BBIG ) are up by more than 40% today. This comes despite the fact that the company received a delinquency letter from Nasdaq earlier this month.
Vinco Ventures (NASDAQ: BBIG ) stock is trending on social media today, and the shares are down about 12%. The decline is due to a report that a deal pursued by its joint venture to acquire the National Enquirer had “collapsed.
Insiders appear to be flocking out of Vinco Ventures (NASDAQ: BBIG ), sending shares of this consumer products company lower in today's session. In fact, shares of BBIG stock are down more than 7% at the time of writing, outpacing declines seen in the broader market today.