AMTD Digital stock skyrockets 21,000%, overtaking Costco, thanks to Reddit ‘meme stocks’ on WallStreetBets forum

NEW YORK — The Reddit retail army is back.

A little-known Hong Kong-based company appears to have become the latest obsession among traders on popular Reddit forum WallStreetBets, helping its shares soar 21,000% since going public less than a month ago.

Shares of AMTD Digital are up almost 3,000% over the past week and are up 126% on Tuesday alone.

The company debuted on the New York Stock Exchange on July 15, listing its shares at $7.80 a share. Since then, the price has increased to $1,679.

AMTD Digital is a financial services startup traded on the New York Stock Exchange under the ticker symbol HKD. The company is a subsidiary of AMTD Idea Group, a Hong Kong-based investment bank that is also listed in New York and Singapore. Founded in 2019, the entity provides fintech services in Asia, including a virtual bank called Airstar.

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AMTD Digital generated just over $25 million in revenue last year, according to a regulatory filing. And yet, as of this week, its market cap is more than $310 billion, surpassing Shell and Costco and approaching the size of Walmart and Exxon.

Even the company scratched its head at the sudden surge.

“To our knowledge, there have been no material circumstances, events or other matters related to our company’s business and operations since the IPO date,” the company said in a statement Tuesday.

The parent company has also benefited from the mania. AMTD Idea Group was the No. 1 trade on Fidelity’s platform on Tuesday, and its stock is up almost 237% in New York.

The frenzy commemorates the January 2021 surge in shares of GameStop and AMC, both of which experienced historic gains after retail investors on the WallStreetBets subreddit grabbed what they saw as the companies’ undervalued shares.

FROM 2021: AMC shares jump more than 120% to an all-time high

A user on the forum pointed out the similarities on Wednesday and asked if this was “another GameStop AMC situation.”

“Where did AMTD Digital come from,” they wrote. “What have I missed?”

There seemed to be no particular reason for the rally, other than that online users have been calling for people to get into stocks for the past few days.

It worked: On Tuesday, the company was one of the most traded stocks on Fidelity, according to the investment firm.

The CNN Wire ™ & © 2022 Cable News Network, Inc., a WarnerMedia company. All rights reserved. AMTD Digital stock skyrockets 21,000%, overtaking Costco, thanks to Reddit ‘meme stocks’ on WallStreetBets forum

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