Better Investment: AMC or BBIG
This week’s stock comparison will run down which of these currently popular meme stocks are a better long-term investment.
avatar
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2021-09-18 11:09

First, you will have to decide for yourself if either stock is a good investment at all! Meme stocks have taken off in popularity this year, following the initial short squeeze event for GameStop (NYSE:GME) in early January. Since then, Redditors and other social media investors have been scouring the markets for stocks with high short percentages in their shares outstanding. These traders are hoping for a short squeeze to YOLO, as a new investing technique is born. So which of AMC (NYSE:AMC) or Vinco Ventures (NYSE:BBIG) is a better investment? Let’s take a look!

Better Investment: AMC or BBIG

AMC (NYSE:AMC): AMC quickly became the new king of meme stocks following its short squeeze in June. The largest movie theater chain in the world was saved by investors during the COVID-19 pandemic, as the short squeeze provided enough capital for the company to continue operations. AMC is still the most popular meme stock on any platform and millions of retail investors are holding their shares with diamond hands. But AMC also represents an industry that is in decline, following the emergence of streaming platforms like Netflix (NASDAQ:NFLX) and Disney+ (NYSE:DIS). While Disney recently backtracked on its decision to simultaneously release its blockbusters in theaters and on Disney+, there is no way of knowing if it will continue with this in the future. AMC has also massively diluted its shares as the company continues to sell stock to raise capital, something that is often not taken into account by YOLO traders. Even AMC itself warned investors that the stock is no longer trading at price levels that are attached to the company’s fundamentals. Can AMC survive for the long-term? Or is the movie theater dying a slow death and heading towards extinction.

Vinco Ventures (NASDAQ:BBIG): Another popular meme stock, Vinco Ventures has gained over 520% so far in 2021. The company deals in the Blockchain industry and offers several platforms for NFTs or Non-Fungible Tokens. The E-NFT site allows musicians to release music while getting paid by consumers to actually own a unique part of that artist’s music. The idea is similar to one that is believed to be in the works for Tidal Music which was bought by Square (NYSE:SQ) earlier this year. Vinco also has a spin-off called Cryptyde, which is an investment company that aims to acquire game-changing Blockchain-based startups. An investment in Vinco Ventures, is an investment in the future of NFTs and the Blockchain.

Final Verdict: Honestly, I would probably not invest in either right now and have not once thought to add them to my portfolio. AMC actually has an established brand and at least has a business to fall back on. I am skeptical of companies like Vinco Ventures, who seem to be just jumping into the current hottest industries. Vinco could prove me wrong, but I would rather invest in a company that I know has a product in demand, even if that demand is waning. Reluctantly, I believe AMC is a better investment for the future.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2021-09-18 11:09

avatar
About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Bitcoin is Hot: 2 Stocks to Buy Now
Here are 2 lesser-known crypto stocks that I think will benefit from Bitcoin’s bull run.
By Mike Sakuraba | 2 weeks ago

2 Stocks to Buy for the March Bull Run
Here are 2 I have my eyes on for March.
By Mike Sakuraba | 2 weeks ago

2 Stocks to Buy on the Earnings Dip
Here are two stocks that sold off that I have my eye on!
By Mike Sakuraba | 2 weeks ago

2 Stocks to Ride the NVIDIA Hype Train
Now that NVIDIA (NASDAQ: NVDA) saved the market again, is it finally time to buy?
By Mike Sakuraba | 3 weeks ago

2 Stocks I'm Never Buying Again
Never is such a strong word but when it comes to investing, it is easy to never want to buy a stock again.
By Mike Sakuraba | 3 weeks ago

Is it Too Late to Buy SMCI Stock?
Is it too late to get into SMCI after this parabolic run?
By Mike Sakuraba | 1 month ago

NVIDIA Earnings: Will They Even Matter?
Let’s examine the bear and bull case for NVIDIA’s earnings next Wednesday.
By Mike Sakuraba | 1 month ago

2 Stocks I'm Avoiding as Markets Hit New All-Time Highs
People like to throw around the term bubble a lot when the market goes up a large amount in a short time. But is it really a bubble or did they just miss out on the action? I usually say it’s the latter.
By Mike Sakuraba | 1 month ago