A little-known Hong Kong company recently saw an apparent random increase in stock market valuation.
Last month, AMTD Digital made its New York debut with a share price of $7.80.
The company’s shares have had a wild ride this week, ending at $1,100 on Wednesday.
Some analysts have compared AMTD Digital’s fast increase in value to “meme stocks,” which are securities that have become well-known among regular investors as a result of social media.
Given that the business’s valuation surpassed $300 billion on Tuesday, share trading in the corporation has been especially erratic this week.
As a result, AMTD Digital briefly outperformed technological giant Alibaba in terms of valuation on the New York Stock Exchange.
Even though it fell more than 30% during trading on Wednesday, it still had a bigger US market value than Disney.
AMTD Digital offers services to help internet businesses enhance their financial services technologies. A stock market filing states that as of the end of February this year, it employed 50 people.
According to a regulatory filing, the company’s primary sources of income are fees and commissions for its digital financial services business, which generated slightly over $25 million in revenue last year.
The company’s website features a corporate video with a space theme that highlights the variety of digital services it provides.
According to the company’s website, it serves as “the fusion reactor at the heart of the AMTD SpiderNet ecosystem,” and it is a one-stop digital solutions platform in Asia with businesses in a variety of industries, including digital financial services, media, content & marketing, SpiderNet ecosystem solutions, and digital investments.
The increase in AMTD Digital’s valuation has been compared by some analysts to so-called “meme stocks.” Because of their widespread appeal, investing in meme stocks is frequently very risky and unstable.
AMC, a chain of movie theatres, and US retailer Gamestop, were two of the most well-known meme stocks to have their shares jump last year.
Wedbush Securities managing director Dan Ives said that with a $300 billion market cap, this is a big puzzle that demonstrates that the meme stock period is still alive.