- AMTD Digital stock has rallied over 33,000% since July 15 IPO.
- HKD stock traded as high as $2,589 on Tuesday.
- AMTD Digital closed at a value of $310 billion on Tuesday.
The sheen may finally have fallen off for AMTD Digital (HKD), the Hong Kong investment company that was worth more than Walmart (WMT) just two days ago. Shares are currently down 25% at $825 in the first half hour on Thursday. This comes a day after HKD stock sold off 34.5% to end the day at $1,100 on Wednesday. This puts HKD stock 68% off its all-time high of $2,589 on August 2.
Also read: AMTD Digital (HKD) advances to $2,000 in seventh consecutive gaining session
AMTD Digital news
Billionaire Li Ka-shing’s CK Group has formally and publicly divested all his stake in AMTD Group, the grandparent, as it were, of AMTD Digital. The company has raised eyebrows on Wall Street and possibly in government since shares of AMTD Digital vaulted over 33,000% since its July 15 IPO at $7.80.
AMTD Digital is a subsidiary of Hong Kong-based AMTD IDEA Group, and the latter owns about 89% of the former. AMTD Group owns a little over half of AMTD IDEA Group. It is similar sounding AMTDs all the way down.
Ka-shing's CK Group only held about 4% of AMTD Group and did not own any shares directly in AMTD Digital. Much of the scrutiny regards AMTD Group's chairman, Calvin Choi. The Hong Kong native is a Canadian citizen who is a former UBS banker. Choi was already facing an industry ban in Hong Kong for earlier failure to disclose conflicts of interest, according to an article in The Wall Street Journal.
The subsidiary AMTD Digital was worth more than $400 billion briefly on Tuesday despite only having fiscal year revenue in the range of $25 million. The company runs an investment banking platform, mostly for startups it appears, called SpiderNet.
AMTD Digital (HKD) went public on July 15 by selling 16 million American depositary shares for $7.80 each, though the stock immediately opened at $13. The IPO gave AMTD Digital a valuation between $1 and $2 billion. While the stock has 185 million total shares, only about 19 million are available to trade. This makes for a minuscule float that allowed decent demand to quickly overwhelm supply.
AMTD Digital stock forecast
No, this is not the newest crypto scam. This HKD stock one-hour chart is from a real stock that trades on the New York Stock Exchange. HKD share price steadily broke through both the 21-hour and 9-hour moving averages on Wednesday, and it would seem this high flyer is doomed to trend much lower.
How low? It is very hard to say, but the original underwriters did give AMTD Digital stock a price tag of $1.4 billion before the IPO. That would of course make this a 99% drop if it came to that. It is strange to talk about support with this price action, but if there is any it should be around $800, where a ledge formed on August 1 and 2. Interestingly enough, the Accumulation/Distribution line has been flat at around 65,000 since Tuesday. With the price coming down so swiftly, one would think the line would fall.
HKD 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.