Just when you thought the markets couldn’t get any crazier, they find a way to deliver. 🤪
Today we’re talking about $HKD, which came public about two weeks ago. The company is AMTD Digital Inc., a comprehensive one-stop digital solutions platform headquartered in Asia. It priced 16,000,000 American depository shares (“ADSs”) at $7.80 per ADS on July 15th.
Since then, the price of this low-float stock has absolutely skyrocketed.
No, we’re not even kidding. To the f*#&ing moon. 🚀🌕
At its intraday peak, it was worth close to $500 billion, making it one of the largest ten companies in the world by market capitalization. At today’s close, it’s still worth $310 billion, meaning it’s larger than 480 S&P 500 stocks (in other words, most of the U.S. stock market). 🤯
And the craziest part is that nobody knows why. Even the company released a note today saying, “During the period since our initial public offering, the Company noted significant volatility in our ADS price and, also observed some very active trading volume. To our knowledge, there are no material circumstances, events nor other matters relating to our Company’s business and operating activities since the IPO date.
Given the share price is now into the thousands, traders have turned to its parent company’s shares, $AMTD, as a way to play the stock’s pop. AMTD Idea Group reportedly owned 97.1% of AMTD Digital’s outstanding shares as of its July 15th SEC filing.
If the market has taught us anything over the last few years, it’s that crazy moves can and do happen all the time, but they don’t last forever.
How long this one will continue is anyone’s guess, but the world is now watching to see how this saga ends. 👀
*Hat tip to retail’s favorite markets persona, Jim Cramer, for the title of this post.