A little-known Hong Kong company has seen its stock market price rise in recent days, but has since halved its value. AMTD Digital’s market capitalization jumped 244% on Tuesday to more than $450 billion, but the stock fell 40% later on Wednesday, prompting investors to remember last year’s meme stock frenzy, which engulfed the likes of Gamestop and AMC. Record rallies in the shares of companies.
The stock has risen nearly 21,000% since July IPO, when it was listed in New York last month for a price of $7.80. Shares of the firm have been on a rollercoaster ride, closing at $1,100 on Wednesday, falling in half in value after rising more than $2,555 on Tuesday, which was 32,600% above its listing price.
AMTD was the most mentioned stock on digital reddit.com, the hub of the social media platform meme stock The craze of 2021, when stocks gained popularity retail investor through social media. The fintech company, which provides loans and services to startups in exchange for fees, has a low throughput and is tightly controlled by parent company AMTD Idea.
The company on Tuesday said that since the date of the IPO there has been no material change or event related to the company’s business and operating activities and it is monitoring the volatility of the stock. The stock only saw an uptrend on Tuesday as trading was halted several times for volatility, however on Wednesday the stock fell back to earth.
Amtd Digital Inc jumped 108 percent since its US initial public offering on July 16, the biggest jump on the first day for a listing of its size. According to data compiled by Bloomberg, the debut show was the best for listings on the US exchange this year for more than $25 million. The Hong Kong-based financial services platform trades on the New York Stock Exchange under the symbol HKD.
A few other recently listed US companies have seen similar growth, including Getty Images, which has jumped more than 200% since its July 25 launch.
(with inputs from agencies)
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