August 13, 2022

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The stock is believed to have risen several thousand percent by accident

The stock is believed to have risen several thousand percent by accident

Hong Kong-based AMTD Digital was listed on the New York Stock Exchange in mid-July at $7.80 per unit (ADR). Two weeks later, the stock surged a whopping 21,400 percent to $1,167.

The massive price hike pushed the company’s market value to $240 billion, above giants such as Shell, Disney, Toyota and Merck. This is despite the fact that the turnover of the company was only $25 million in 2021.

But on Thursday, the stock collapsed 27 percent, reducing the rally since the exchange’s listing to just over 10,000 percent.

During Friday on Wall Street, the price recovered. At the time of writing, the stock is up 12.38 percent at $899 per share. This brings the company’s total market value to $166 billion.

A move by chance?

The WallStreetBets forum on Reddit was one of the main drivers behind the surge in prices in shares like Gamestop and AMC Entertainment Holding last year. However, the forum denies that they are involved this time.

For his part, Bloomberg commentator Mark Jonglove wrote that he suspected that traders misappropriated the HKD ticker symbol against the Hong Kong dollar, which is a more liquid instrument than the AMTD stock. So he believes that this pushed the cycle to an incomprehensible high level.

So Gangloff thinks the stake went up several thousand percent by accident.

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