Meme stock? AMTD Digital thanks investors for massive stock surge
Yahoo Finance's Brian Cheung breaks down a chart showing the massive rise in the stock for Hong Kong-based fintech firm AMTD Digital.
Video Transcript
BRIAN CHEUNG: Time now for our Chart of the Day. And there's a lot of trending tickers, but want to highlight one stock that's giving flashes of meme. This is AMTD Digital, a Hong Kong-based fintech company.
Stock is at 1,400. That's down about 16% intraday. OK, oh my gosh, what's happening? Take a look at what's been going on a one-month basis. Up 4,936%. This is not a misprint.
The company issued a news release yesterday saying thank you for the rip higher, but they didn't have any explanation. There's no particular news item that's explained this over the last month. WallStreetBets buzzing, trying to figure out what's going on. As a reminder, these are American depository shares of a foreign company. Liquidity is a little bit less. The likes of Citron Research tweeting earlier this morning, they think that the price is stupid.
And the folks over there also saying that the SEC does not regulate market caps. Market caps relevant here because this is now currently a $260 billion market cap company, Kiko. That's four times [INAUDIBLE]. So, I know, right? It makes you just go, what the heck is going on here?
Well, again, the liquidity for these American depository shares is kind of [INAUDIBLE] has pointed out, is not quite at the level of even GameStop or AMC. So it doesn't take a lot of movement or a lot of trades to make stocks go crazy volatile like this. Although, you do wonder, it's been directionally one way.
So what's going on here? Who's playing around here? I mean, these are traded on the Stock Exchange, but again, it's depository shares. It's part of a-- this is actually a subsidiary of another holding company that's also traded overseas. But we've got to figure out what's going on here.
AKIKO FUJITA: A release to say thank you.
BRIAN CHEUNG: Yeah, that's--
AKIKO FUJITA: Very Hong Kong.
BRIAN CHEUNG: Yeah, the PR news release in the headline said, thank you, [CHINESE].
AKIKO FUJITA: It's not a meme stock.
BRIAN CHEUNG: Not a meme stock.
AKIKO FUJITA: Not a meme stock.
