In the current squeezed capital markets, getting a stock with positive gains in the year is rare. However, AMTD Digital Inc. (NYSE:HKD) shares are making headlines. That was after becoming a center of retail interest. As of Wednesday, the stock traded at $1,014.98, up from its July IPO price of $7.80. AMTD also trended on Thursday as retail investors looked to squeeze the last juice from the meme stock.
AMTD Digital is a fintech firm based in Hong Kong. It offers loans and other services to startups. The company is tightly controlled by AMTD Idea, its parent company.
The latest gains in AMTD have since been linked with a pump-and-dump scheme. Hindenburg Research founder Nate Anderson says that the stock is driven by retail investors. AMTD is also in agreement with the view. In a Tuesday note, the company said there was no event or material change related to it or the operating activities. AMTD further stated that it was monitoring the volatilities that gripped its stock.
AMTD is on a parabolic move as retail interest grows
Source – TradingView
From the technical outlook, AMTD is displaying a parabolic movement. The stock is retreating after recent gains. However, retail interest remains high as gains in the last 24 hours are more than 13%. However, as stated, AMTD is not driven by any fundamentals. That warns potential investors that the stock could face a painful crash.
Concluding thoughts
AMTD stock is driven by retail interest. It could be the latest meme stock to fall victim to coordinated pump-and-dump. Investors should be aware of that and consider the risks involved in trading or holding the stock.
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