If you like to follow real-life soap operas, then you’re invited to take a look at Vinco Ventures (NASDAQ:BBIG). This company’s story involves a takeover attempt, sudden executive-level changes and extreme volatility with BBIG stock. If the situation calms down, however, then Vinco Ventures’ investors might enjoy a relief rally.
New York-based Vinco Ventures is a tiny company with a market capitalization of around $229 million. Its most interesting product is a TikTok clone called Lomotif.
Lomotif already has more than 31 million on-platform monthly active users (MAUs). There’s a lot of revenue-generation potential here, but investing profitably in Vinco Ventures has been difficult in 2022. So, let’s see if we can make sense of the drama and determine whether a resolution is afoot.
What’s Happening With BBIG Stock?
Probably due to a meme-stock revival earlier this year, BBIG stock did experience a few quick pops in 2022. Informed investors shouldn’t just sit around and expect the short-squeeze crowd to come back and bid the price up again, though.
Instead, serious investors should see what’s actually going on with the company. As it turns out, Vinco Ventures has been at the center of some controversy. According to a press release from Vinco Ventures, the company released Theodore Farnsworth from the co-CEO position while also purging other insiders from the company.
Moreover, Vinco Ventures claims to have thwarted a hostile takeover attempt by the Farnsworth Group. The C-suite shakeup left John Colucci as Vinco Ventures’ sole CEO. However, a court order from Aug. 19, 2022, established Vinco Ventures board member Lisa King and Ross Miller as the company’s co-CEOs.
Finally (Hopefully) Some Stability at Vinco Ventures
Successful businesses don’t typically involve this level of drama and turmoil at the executive level. However, there seems to be a resolution afoot, or at least the beginning of one.
Not long ago, Vinco Ventures announced a settlement of the company’s ongoing litigation in Nevada. According to the settlement, Ross Miller will be Vinco’s only CEO, and he will run the company “under the oversight of the Board of Directors.”
In addition, the Gabe Hunterton will be the president of Vinco Ventures, while Lisa King and Rod Vanderbilt will remain on the company’s board. Plus, two company insiders have resigned from their positions at Vinco Ventures.
With all of that, Miller claimed that the litigation is now “behind us.” Thus, with the legal wrangling out of the way, it’s time for Vinco Ventures to “execute.”
What You Can Do Now
Will the revamped Vinco Ventures actually “execute,” though? This remains to be seen, but Miller’s optimism may turn out to be justified.
At the very least, a relief rally may be in store for BBIG stock. What the shareholders will need to see now is, indeed, “execution”: a powerful push for Lomotif and better top- and bottom-line results in the coming quarters. If you can envision Miller and Vinco Ventures making this happen, then feel free to grab a few shares and hope for the best.
On the date of publication, David Moadel did not have (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.