Another slightly unknown company has ridden a mysterious, massive stock trading price high, but there’s division over whether or not it qualifies as a “meme stock,” per ABC News on Sunday.
AMTD Digital is a Hong Kong-based digital services firm that debuted on the New York Stock Exchange at $7.80 a share on July 15, Forbes reported.
At its peak on August 2, it was trading at $1,679 a share at market close – a 21425.6% increase.
As of Monday afternoon, though, AMTD has calmed to around $500 a share.
Typically, stocks go up or down based on identifiable news, from a policy proposal to comments by leadership in the press or the numbers presented in earnings calls. Without a definite source here, it looked like a meme stock candidate — but not everyone is so sure, ABC reported.
Citron Research tweeted that AMTD has “not captured the imagination of retail traders” as GameStop did. Citron added that it hasn’t had the same trading volume as the original meme stock craze with GameStop.
Retail investors, likely inspired by social media — particularly the Wall Street Bets Reddit group — betted against hedge fund recommendations for GameStop in January 2021, boosting the stock from around $4 a share in early January to around $120 near the end of the month.
And meme stocks aren’t going away: WSB discussed another round of meme-stocking for GameStop, Bed Bath & Beyond, and AMC Theatres, which may be already happening: All three are soaring as of Monday, Yahoo Finance reported.
Other analysts saw it differently than Citron. “This is a meme stock in our opinion,” considering the relative unknownness of the company compared to its brief sky-high market value, said Dan Ives, tech analyst of Wedbush Securities, told Entrepreneur via text.
“The meme era still has some oxygen,” he added.
AMTD, for its part, released a statement on August 2, the day its stock price hit a peak.
“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,” the company said.
AMTD did not respond to Entrepreneur’s request for additional comment.