Hong Kong: A little-known Hong Kong company has seen its stock market value soar in recent days, for no apparent reason, the media reported.
AMTD Digital made its New York debut last month, priced at $7.80 a share, reports the BBC.
This week, the firm’s shares have been on a roller-coaster ride, closing Wednesday at $1,100.
The meteoric rise in AMTD Digital’s value has seen it likened to so-called “meme stocks”, shares that gain popularity among retail investors through social media, the BBC reported.
Trading in the company’s shares has been particularly volatile this week, touching $300 billion Tuesday.
That meant that AMTD Digital briefly overtook technology giant Alibaba’s New York stock market valuation, the BBC reported.
In Wednesday’s trade, the company plunged by more than 30%, but that still gave it a higher US market value than Disney.
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.
Social media users have likened the meteoric rise in AMTD Digital’s value to so-called “meme stocks”, shares that gain popularity among retail investors through social media.
Due to the nature of their popularity, trading in meme stocks is often extremely speculative and volatile, the BBC reported.
US retailer Gamestop and cinema chain AMC were two of the most high-profile meme stocks that saw their shares soar last year.
“This is a major head-scratcher and it shows that the era of meme stocks is not over with a $300 billion 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.
IANS