AMTD Digital (NYSE:HKD) showed again that is the latest meme stock poster child as the Hong Kong-based developer of digital entertainment platforms watched its shares rocketed up by more than 150% in value on Tuesday.
Never heard of AMTD Digital (HKD)? You probably have plenty of company.
AMTD (HKD) went public on July 15 when it raised $125M in the largest Chinese company IPO in the U.S. this year. Since going public less than three weeks ago, AMTD (HKD) shares have soared by...wait for it...15,060%, and were at $1,800 a piece in Tuesday's trading session.
So, what's behind AMTD's (HKD) eye-popping rise? Well, not a lot.
The company has about 185M shares outstanding, but a relatively low share float--the number of shares that the public can buy and sell on a daily basis--of just 19M shares. That situation sets AMTD (HKD) shares up for wild price swings and manipulation from traders. Tuesday's gains came on the heels of an 85% rise on Monday, a 122% gain last Friday and a rise of almost 135% last Thursday.
Those rapid, and arguably unprecedented gains in AMTD (HKD) shares even left company officials at a loss for words.
On Monday, AMTD (HKD) said in a statement that it appreciated the support of the investment community as its shares "are still undergoing our initial stabilization." AMTD (HKD) said that with regards to why its shares have performed so wildly since it went public.
"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.