header banner
Default

Big News: Vinco Ventures Was Delisted by the Nasdaq


Don't expect a rally from this fallen meme stock

Oct 23, 2023, 4:48 pm EST

Vinco ventures (BBIG) logo on an orange/red background

Source: vincoventures.com

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.

This shouldn’t surprise anyone who has followed Vinco Ventures recently. In July 2023, Vinco received a delinquency notice from the Nasdaq due to a lack of independent directors on its board. In typical meme stock fashion, this news sent BBIG stock shooting up, but the growth didn’t last long. Not long after, Nasdaq suspended trading for BBIG stock.

InvestorPlace predicted that things were likely about to get worse for BBIG and that’s exactly what happened. The meme stock now trades via an over-the-counter (OTC) exchange.

Does this mean Vinco is destined to go the way of Bed Bath & Beyond? Let’s take a closer look.

BBIG Stock After the Nasdaq Delisting

VIDEO:

When a company moves from a major exchange to over-the-counter, it’s often a sign that the end is approaching — and typically on the faster side. This is often preceded by a trading suspension. Of course, even unstable companies can bounce back and regain compliance with their exchanges. But when a stock fails to do so and loses its spot, smart investors typically run the other way.

Vinco investors knew this day would come. In August, Business Insider reported that unless the company regained compliance by Aug. 4, 2023 or requested “a review by a hearings panel,” it would be delisted. That day came and went with no progress. On Oct. 11, the exchange confirmed its plans to delist BBIG stock. A filing with the U.S. Securities and Exchange Commission (SEC) announced that Nasdaq had “determined to remove from listing the securities of Vinco Ventures, Inc., effective at the opening of the trading session on October 23, 2023.”

Of course, investors can still trade BBIG stock over-the-counter. But that doesn’t mean shares will see any growth from here. The company is still deeply troubled, with a checkered past including problems with its board and legal investigations. If any retail investors are still hoping for a short squeeze, they’re likely in for disappointment as well. Even high short interest didn’t lead to the BBIG stock squeeze that seemed possible a few months ago. Now that BBIG no longer trades on the Nasdaq, such a scenario is even less likely to play out.

Even the traders who seek out risky plays should approach BBIG stock with extreme caution. Every bad thing that can happen to a company seems to be happening to Vinco Ventures.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Sources


Article information

Author: Destiny Ward

Last Updated: 1700254562

Views: 991

Rating: 4.2 / 5 (53 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Destiny Ward

Birthday: 1989-05-26

Address: 439 Peterson Bypass, New Aaronview, NM 89179

Phone: +3529797777284806

Job: Taxi Driver

Hobby: Painting, Cycling, Ice Skating, Running, Card Games, Table Tennis, Snowboarding

Introduction: My name is Destiny Ward, I am a intrepid, sincere, variegated, lively, spirited, exquisite, rare person who loves writing and wants to share my knowledge and understanding with you.