Obscure Hong Kong tech company’s stocks surge 21,000%, valued more than McDonald's thanks to Reddit
Thanks to popular Reddit forum WallStreetBets, Hong Kong financial tech company AMTD Digital is now worth even more than giants like Coca-Cola, McDonald’s and Costco, with a current market value of $310 billion.
AMTD Digital, which trades under the New York Stock Exchange (NYSE) ticker HKD, has gone from being virtually unknown to becoming the new “meme stock” — one that gains popularity via social media.
It has been dubbed the new GameStop (GME) and AMC Entertainment (AMC), which were the crazes of 2021’s online traders.
The Hong Kong newcomer’s shares soared a staggering 21,000 percent since it went public in the U.S. last month.
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At the time of its debut to American investors on July 15, stocks were valued at $7.80 each, giving the small company a market share value of $1.4 billion.
This made AMTD Digital the first Hong Kong company to be worth at least $1 billion on the NYSE, which is an impressive feat on its own, but nothing compared to what soon followed.
By July 29, the stock surged to $400, and on Tuesday, American depositary receipts (ADRs) closed at $1,679 each, giving it a total market value of $310 billion.
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AMTD released a statement of gratitude while also acknowledging its unusual meteoric rise in the past weeks.
“Thank you note to investors and our response to our ADS price performance,” wrote the company on Tuesday in the subject line of its release.
“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.”
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According to the company description, AMTD Digital describes itself as “one of the most comprehensive digital solutions platforms in Asia,” serving as a “one-stop” platform for businesses in regards to digital financial services.
The company, a financial services startup, is an arm of AMTD Idea Group, an investment bank based in Hong Kong.
The larger company, founded in 2019, is listed in both New York and Singapore and provides fintech services throughout Asia, including virtual bank Airstar.
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Featured Image via ABC News
