A less famous Hong Kong company has noticed its stock market value soaring 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, per BBC.
The meteoric rise in AMTD Digital's value has seen 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.
It plunged by more than 30%, but that still gave it a higher US market value than Disney, in Wednesday's trade. 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.
"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.