- BBIG stock closes up 59% on Tuesday the meme stocks soar.
- BBIG stock had been trading nearly 90% higher earlier on Tuesday.
- BBIG and other meme stocks return in popularity as equity rally gathers pace.
A return to January 2021 seems to be in the cards this week with some huge gains in meme stocks. The move has broadened from the traditional favorites – GME, AMC, etc. – out into some huge moves in the likes of ROKU, BBBY and now BBIG. The equity rally has seen investors rush back into formerly well-beaten down names with little in the way of fundamental news to back up the decision-making process.
BBIG stock news
With an intraday move of nearly 90% and a close up 59%, there must surely be some fundamental change to company performance. Perhaps a huge new contract or a rumor of a merger? Nope, it is just plain and simple momentum trading. Once retail gets behind a stock and it begins trending, the moves are outsized in this ever more interconnected trading world. Whether this is a permanent feature of the equity market or just part of a bubble is harder to grasp. Most likely a bit of both. Increased access to 4G and 5G networks mean that smartphones are now the equivalent of flash boys’ trading terminals that once required fiber optic co-located terminals costing you have thousands. Technology has certainly democratized access to trading, meaning there should always be moves like this even if the bear market returns.
On Tuesday BBIG stock opened at $0.76, not much change from Monday’s close at $0.71. Soon it began to spike higher and reached $1.42 in the first few hours before retracing back to close at $1.13. Volume was also the highest since May with nearly 90m shares trading.
BBIG stock forecast
Unfortunately, the retail crowd is usually late to the party, and this recent equity rally has been long in the tooth. It is only this week though that we have seen some moves of meme stock proportions, so it may be a sign of the last overshoot of this rally. Time will tell, but look out for some stall signs. Green-to-red candlesticks within the first hour of trading, high premarket moves that are not followed through, etc. We may have one or two more days left in the meme stock rally as the attention generated by the stellar moves on Tuesday will attract a few more FOMO traders. Once all is in and done, expect things to come back pretty quickly, so be warned. If BBIG fails to take out Tuesday’s high, then that is already a sign of falling momentum.
BBIG stock daily