On Tuesday, there was a market rally as meme stock AMTD was fueled by a Reddit subgroup similar to what was seen by AMC and GameStop, in 2021. The American depositary receipts (ADR) of the company that was listed at $7.80 saw a 128 percent jump and AMTD’s market capitalization stood at more than $300 billion, on Tuesday close. On Wednesday, the stock fell by 40 percent. On the same day, the company’s ADR traded at $1014.98. During its public offering in July, the ADR was listed at $7.80 per share.
AMTD is not a well known fintech company. It is based in Hong Kong and had an initial public listing (IPO) in the New York Stock Exchange (NYSE), in mid July. Within two weeks, on Tuesday, August 2, its ADR jumped up to $1,689 per share. Although there was a drop on Wednesday, its price is still very high and is reminiscent of the GameStop rally last year, but a higher level.
Alternative data provider Quiver Quantitative said that the ticker HKD had been mentioned the most on the Reddit’s WallStreetBets forum, the chat room where GameStop began its rally, last year.
AMTD Digital is a subsidiary of AMTD Idea Group which is an investment group. Its American depositary receipts (ADRs) traded on the NYSE after its public offering in July at $7.80 each. The firm generates revenue from fees and commissions that are obtained through its digital financial services business.
According to a regulatory filing, AMTD’s revenue in 2021 was only $25 million. The company was surprised by the surge in its ADR price and expressed its gratitude in a “thank you” note to its investors, on Tuesday. It also said that it was monitoring the market closely to see if there were any trading abnormalities.
AMTD Digital’s rally has had an effect on its parent AMTD Idea Group and its shares also rose by about 500 percent since the end of July. Fidelity investors said that the parent group stock was the fourth most heavily traded one, on Wednesday.
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