BBIG - BBIG Stock: Vinco's TikTok Rival Just Reached a New Deal
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Vinco Ventures (NASDAQ:BBIG) stock has been trading poorly lately. However, recent catalysts involving a deal with 7digital Group and a security issue with TikTok may pave the way higher for BBIG stock.
Vinco Ventures’ video-sharing platform, Lomotif, could be thrust into the spotlight following some security drama with TikTok. This isn’t the latter’s first tango with U.S. agencies regarding security measures, either. Most recently, it involves the Federal Communications Commission (FCC).
The FCC is accusing the social media giant of gathering “swaths of sensitive data that new reports show are being accessed in Beijing.”
Further, FCC commissioner Brandon Carr asked both Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) to reconsider their positions on TikTok. Specifically he said the two companies should “remove TikTok from their app stores for its pattern of surreptitious data practices.”
Can BBIG Stock Rally on 7digital Deal?
So far, this year has not been very good for BBIG stock. Shares are down 32.7% so far this year and 71% from their 2022 high. From its all-time high, BBIG stock is down 87% and just pennies above its all-time low.
Could this be Vinco’s time to shine? TikTok’s issues aside, Vinco recently secured a new two-year contract with 7digital Group, which will provide licensed music and clips for creators. Specifically:
Lomotif will stream licensed music and clips directly from 7digital’s music-as-a-service platform to their end-users, with the AIM-listed firm’s platform also automatically filtering for label clearances so that the app can only access fully licenced parts of the catalogue. 7digital also added that Lomotif will utilise its full-service back-end label and publisher reporting solutions.
Will this one-two punch — the deal with 7digital and TikTok’s U.S. headaches — pave the way for BBIG stock?
While Vinco Ventures can see its share price rally, it’s not a black-and-white situation. If TikTok were removed from the U.S., social media juggernauts like Snap (NYSE:SNAP) and Meta’s (NASDAQ:META) Facebook and Instagram would likely fill the gaps in users’ time.
It’s hard to imagine Lomotif catching fire at this point in time. That’s especially true with TikTok still operating in the U.S. That being said, any meaningful uptick in Lomotif’s usage could surely fuel a gain in BBIG stock. The stock has badly lagged amid this bear market, so any good news could squeeze shares higher.
On the date of publication, Bret Kenwell did not have 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.
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