Despite the lack of evident catalysts, AMTD stock (NYSE:HKD) continues to rise. Heres what investors should be aware of.
What Exactly Is AMTD Digital?
AMTD Idea Group (AMTD) is a subsidiary of AMTD Digital (HKD) Receive AMTD IDEA Group American Depositary Shares, each reflecting one Class A Report.
The Hong Kong-based investment bank has seen its stock rise roughly 700% in the last two trading days.
The firm provides consumers and small and medium-sized enterprises with digital banking services and insurance technology platforms. AMTD Digital also provides the SpiderNet ecosystem, which includes a platform for increasing investor communication.
On June 15, it sold 16 million ADSs (American depositary shares) for $7.80 apiece, raising $124.8 million in cash in its first public offering (IPO).
After around two weeks, unusual trading activity propelled AMTD Digitals stock price above $2,000, representing an impressive 21,000% rise since its NYSE debut.
Following the massive increase in share price, the firm said in a statement that no major events or circumstances relating to its business would explain the amount of volatility in AMTD stock. The business also said it would continue examining the stocks trading behavior for any subsequent irregularities.
During the height of AMTD Digitals trading activity, AMTD stock (NYSE:HKD)was valued at up to $310 billion – more than Coca-Cola KO. AMTD Digital now has a market value of $35.5 billion, which is more significant than Rivian (RIVN) Get Rivian Automotive Inc. Report and Twitter (NYSE:TWTR) Get Twitter Inc. Report.
In 2021, AMTD Digital made $25 million in revenue. It is presently trading at 400 times its previous fiscal years profits.
Why Is AMTD Digitals Inventory in the Triple Digits?
The mystery surrounding the trading activities of AMTD Digital shares persists. Without any evident reason, the Hong Kong digital investment bank soared 311% during the trading session on September 14 and another 50% on September 15.
The companys most recent announcement came on August 30, when two directors were added to the board.
Due to excessive volatility, trading in HKD shares was suspended 11 times on September 14. According to Bloomberg statistics, almost 1.5 million shares were exchanged, representing a 5,500% increase over the previous ten days average trading volume. The current float of AMTD Digital is 23.25 million shares.
Featured Image- Megapixl @ Ekkasit919
Author: Okoro Chinedu
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