Vinco Ventures (NASDAQ:BBIG) stock is taking a beating after the company released its earnings report for the third quarter of 2021 on Tuesday.
Source: shutterstock.com/Postmodern Studio
The fall of BBIG stock comes as the company continues to shift into the social media video market via an acquisition of Lomotif. It currently holds an 80% stake in the company and is pushing the business in India and the U.S.
However, it appears investors aren’t happy with growing losses from these efforts. That includes net loss coming in at $542.5 million, or $7.59 per share. That’s a much wider net loss than the $2.8 million, or 30 cents per share, reported during the same period of the year prior.
Vinco Ventures’ revenue for the third quarter of 2021 also isn’t doing so hot at $2.23 million. That’s an 11.5% drop compared to the company’s revenue of $2.52 million reported during the same time last year.
To go along with that, gross profit margin during the quarter dropped to 31.4% year-over-year as compared to 40.3% in Q3 2020. That’s due to its declining personal protective equipment sales in its Edison Nation Medical division.
Lisa King, CEO of Vinco Ventures, said the following in the Q3 earnings report.
“We are very pleased with our operational developments in the quarter, which included key building blocks of our strategy to create a global media and content platform. Importantly, through our joint venture, ZVV Media, we completed the acquisition of an 80% interest in Lomotif, a global, pure play video-sharing social networking platform and we are making good progress on extending the brand to additional geographies, including the U.S. and India.”
BBIG stock is down 21.7% as of Tuesday afternoon but is up 144.4% since the start of the year.
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On the date of publication, William White 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.
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