Is a giant short-squeeze brew underway in Vinco Ventures (BBIG) stock?

Source: vincoventures.com
The next short press may be approaching quickly. In the past, Vinco Ventures (NASDAQ:BIG) never managed to gain momentum, demonstrating a pattern of instability. The technology and media holding company recently implemented a reverse stock split, quickly sending BBIG shares into a tailspin.
This week, however, BBIG got off to a good start. As of this writing, stocks are up 20% for the day and show no signs of slowing down. The data strongly indicates that this spontaneous growth is due to the increasing possibility of a short Vinco squeeze.
With key metrics suggesting the squeeze has already begun, BBIG is fully focused as retail investors shift into battle mode. But of course, investors need to ask themselves a key question: How high can a short squeeze actually take this stock?
A closer look at the BBIG Stock Short Squeeze
It’s been months since Vinco Ventures has had anything positive to report. In fact, BBIG stock has lost nearly 50% of its value in the past month and is down more than 80% in the past six months. This is far from an encouraging growth trajectory. As is often the case with meme stocks, BBIG now seems to have been flagged as the next big short squeeze. So let’s take a closer look at the data behind the stocks.
According to Fintel, there are currently no shares of BBIG “available to be sold short at any major brokerage.” Three days ago, the short shares available according to Fintel fell to zero. While the figure returned to 2,000 later on May 19, the figure is down to zero as of today.
BBIG currently has a Fintel ‘short compression score’ of 92.07 out of 100. Short interest accounts for over 325% of its free float while short investors have 85.24 days to hedge their positions.
This information strongly indicates a short squeeze in BBIG shares. In fact, the current trajectory of Vinco shares suggests that a tightening has already begun. Yet, while today’s growth is impressive, BBIG just topped $2.50 per share. Even if the squeeze continues, stocks aren’t expected to rise much further before crashing again.
At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
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