PanamaTimes

Friday, Jul 26, 2024

AMTD Digital: How a small Hong Kong firm's shares soared

AMTD Digital: How a small Hong Kong firm's shares soared

A little-known Hong Kong company has seen its stock market value soar in recent days, for no apparent reason.

AMTD Digital made its New York debut last month, priced at $7.80 a share.

This week, the firm's shares have been on a rollercoaster ride, closing on Wednesday at $1,100.

The meteoric rise in AMTD Digital's value has seen it likened by some commentators to "meme stocks", shares that gain popularity among retail investors through social media.

Trading in the company's shares has been particularly volatile this week, as its value rose above $300bn on Tuesday.

That meant that AMTD Digital briefly overtook technology giant Alibaba's New York stock market valuation.

In Wednesday's trade it plunged by more than 30%, but that still gave it a higher US market value than Disney.

On Monday, AMTD Digital thanked investors and said it "noted significant volatility" in trading.

"The company is also monitoring the market closely for any unusual trading activities or abnormalities," the statement said.

AMTD Digital offers services to develop online businesses' financial services technology. It had 50 members of staff as of the end of February this year, according to a stock market filing.

It makes money mainly by charging fees and commissions for its digital financial services business, which brought in just over $25m in revenue last year, according to a regulatory filing.

A space-themed corporate video on the company's website highlights the range of digital services that the company offers.




The company's website describes it "as the fusion reactor at the core of the AMTD SpiderNet ecosystem, AMTD Digital is a one-stop digital solutions platforms in Asia with businesses spanning multiple verticals, including digital financial services, digital media, content & marketing, SpiderNet ecosystem solutions, and digital investments."

Some commentators have likened the rise in AMTD Digital's value to so-called "meme stocks". Due to the nature of their popularity, trading in meme stocks is often extremely speculative and volatile.

US retailer GamesStop and cinema chain AMC were two of the most high profile meme stocks that saw their shares soar last year.

"This is a major head-scratcher and it shows that the era of meme stocks is not over with a $300bn market cap," Dan Ives, managing director of Wedbush Securities told the BBC.

"In a major risk off market in 2022 it's bewildering this meme dynamic can still happen but yet it has and Wall Street is watching this latest craze," he added.

AMTD Digital did not immediately respond to a request for comment from the BBC.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Mexican Drug Lords El Mayo and El Chapo's Son Arrested in Texas
World's Hottest Day Recorded on July 21
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Global IT Outage Sparks Major Concerns
Global IT Outage Unveils Digital Vulnerabilities
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
Colombian Court Annuls Amazon Tribes’ Carbon Credit Deal
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
Boeing Pleads Guilty Over 737 MAX Crashes
Beryl Storm Hits Texas, Killing 2 and Causing Major Power Outages
2024 Predicted to Be World's Hottest Year
Macron Faces New Political Challenges Despite Election Relief
Florida Man Arrested Over Attempt to Withdraw One Cent
Anger mounts at Biden’s top team after disastrous debate
Bolivian President Luis Arce Denies 'Self-Coup' Allegations
Steve Bannon Begins 4-Month Prison Sentence
Biden Warns of 'Dangerous Precedent' After Supreme Court Immunity Ruling in Trump Case
Elon Musk Accuses Kamala Harris of Misleading Post on Trump's Abortion Stance
Hunter Biden Sues Fox News Over 'Revenge Porn' Allegations
New York Times Editorial Board Urges Biden to Exit Presidential Race
US Supreme Court Overturns Obstruction Charges Against January 6 Rioters
US Voters Prefer Biden's Democracy Approach, Trump's Economy Plan: Report
Attempted Coup in Bolivia: President Urges Public Mobilization
Top-Secret US Underwater Drone 'Manta Ray' Revealed on Google Maps
United States Bans Kaspersky Antivirus
Inside El Salvador’s 40,000 Inmate Mega-Prison
Toyota, Mazda, Honda, and Suzuki have committed fraud; falsified safety test results
El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
×