amtd-digital-(hkd)-shares-are-up-1,500%-in-the-past-5-trading-days,-but-citron-research-does-not-think-this-is-a-meme-stock

This shouldn’t be funding recommendation. The creator has no place in any of the shares talked about. Wccftech.com has a disclosure and ethics coverage.

AMTD Digital (HKD), a comparatively obscure Hong Kong-based fintech firm, is up round 1,500 % over the previous 5 buying and selling days, profitable widespread consideration from the mainstream media within the course of.

As an illustration of the ferocity of this rally, contemplate the truth that AMTD Digital shares have been buying and selling at $71 on the 28th of July 2022. Currently, these shares are buying and selling at $1,499!

So, what has spurred this extraordinary rally in an in any other case morose funding local weather? Well, the corporate, which is a subsidiary of the funding holding firm AMTD Idea Group, went public in mid-July by issuing American Depository Receipt (ADR) shares on the New York Stock Exchange and elevating $125 million within the course of. AMTD Digital’s most distinguished product providing pertains to its metaverse platform, known as AMTD SpiderNet, which connects the corporate with “clients, shareholders, business partners, and investee companies to build an ever-extending, inter-connected network that creates value for all stakeholders….” Apparently, it’s an asset administration and funding banking service supplier with a metaverse-imbued taste.

AMTD Digital (HKD) Shares Are up 1,500% Within the Previous 5 Buying and selling Days, however Citron Research Does Not Suppose This Is a Meme Stock

Source: https://www.quiverquant.com/wallstreetbets/

While there is no such thing as a basic foundation for this rally, the inventory has garnered large consideration from Reddit-based retail merchants’ teams, together with the famed WallStreetBets discussion board. Consider the truth that the inventory presently has a twelve-month trailing P/E ratio of 1,917.81! This implies that, without delay, buyers are paying almost 2,000x as a lot because the inventory’s earnings over the previous 12-month interval.

AMTD Digital (HKD) Shares Are up 1,500% Within the Previous 5 Buying and selling Days, however Citron Research Does Not Suppose This Is a Meme Stock

Source: https://www.reddit.com/r/wallstreetbets/comments/wegalp/hkd_amtd_digital_is_now_the_35th_most_valuable/

Apparently, this rally is being pushed by the retail crowd. The one noticeable facet of this surge is the drastic discount within the inventory’s quantity because it shot upward. Note the downward pattern in AMTD Digital’s quantity within the chart under.

AMTD Digital

Source: Yahoo Finance

This brings us to the crux of the matter. Citron Research has now opined that it doesn’t consider that AMTD Digital is a meme inventory.

$HKD is NOT a meme inventory. While positive value is silly, it solely traded 339k shares yesterday. Has not captured the creativeness of retail merchants like $GME. Obviously, there is no such thing as a borrow and if that’s the case has an egregious borrow payment. SEC doesn’t regulate market caps. Have no place

— Citron Research (@CitronResearch) August 3, 2022

Given the “egregious borrow fee” of the inventory, it’s not unreasonable to invest that AMTD Digital shares are in a brief squeeze presently. If so, we pity the social gathering that had shorted this inventory, to start with.

Do you suppose the surge in AMTD Digital shares signifies a return of the meme inventory mania? Let us know your ideas within the feedback part under.