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Why Is AMTD Digital ($HKD) Stock Up 80% Today?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares in AMTD Digital (NYSE:HKD) stock, the Hong Kong brokerage that was subject to a speculative fervor last summer, are off to the races again.
Shares rose 67% before trading opened on Jan. 5, reportedly on hopes for a reopening of business in China and Hong Kong. China plans to re-open the border between the mainland and Hong Kong, where AMTD is located.
None of that explains the, as of writing, 80% rise in HKD stock.
HKD Stock: a Hong Kong Based Controversy
Watching the pre-market action, speculators at Stocktwits talked up a short squeeze. But we’ve been here before.
HKD stock closed above $930/share last August. Our David Moadel warned investors away back then. While it got another bump in September it opened 2023 at about $10.
AMTD claimed to have a “metaverse” unit called Spidernet and had initial support from the CK Hutchison conglomerate. But that was later disavowed.
Chairman Calvin Choi is controversial. Supporters call him a master of audits. Detractors call him a fraud. The scrutiny was heightened after the August run-up.
Choi also founded the AMTD IDEA Group (NASDAQ:AMTD), which bought the French fashion magazine L’Officiel last year and has been linking Chinese designers to it. There has been no speculative fervor in AMTD stock, which rose overnight in sympathy with other Chinese stocks.
While HKD has 185 million shares listed, only 23.2 million are available for trade. Of those 291,000 were listed as short in mid-December.
What Happens Next?
If you’re going to swim with sharks, know how to get out of the pool. Investors who buy into HKD stock, in other words, need to watch every trade and be prepared to bail at a moment’s notice.
If you’re going to bet on a Chinese re-opening, you’re better off with a legitimate company like Alibaba Group Holding (NASDAQ:BABA).
On the date of publication, Dana Blankenhorn held long positions in BABA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
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The post Why Is AMTD Digital (HKD) Stock Up 80% Today? appeared first on InvestorPlace.
News Provided by InvestorPlace via QuoteMedia
Read More: https://investorshangout.com/recentnews/HKD#ixzz7pXK5wtUz
Why Is AMTD Digital ($HKD) Stock Up 80% Today?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares in AMTD Digital (NYSE:HKD) stock, the Hong Kong brokerage that was subject to a speculative fervor last summer, are off to the races again.
Shares rose 67% before trading opened on Jan. 5, reportedly on hopes for a reopening of business in China and Hong Kong. China plans to re-open the border between the mainland and Hong Kong, where AMTD is located.
None of that explains the, as of writing, 80% rise in HKD stock.
HKD Stock: a Hong Kong Based Controversy
Watching the pre-market action, speculators at Stocktwits talked up a short squeeze. But we’ve been here before.
HKD stock closed above $930/share last August. Our David Moadel warned investors away back then. While it got another bump in September it opened 2023 at about $10.
AMTD claimed to have a “metaverse” unit called Spidernet and had initial support from the CK Hutchison conglomerate. But that was later disavowed.
Chairman Calvin Choi is controversial. Supporters call him a master of audits. Detractors call him a fraud. The scrutiny was heightened after the August run-up.
Choi also founded the AMTD IDEA Group (NASDAQ:AMTD), which bought the French fashion magazine L’Officiel last year and has been linking Chinese designers to it. There has been no speculative fervor in AMTD stock, which rose overnight in sympathy with other Chinese stocks.
While HKD has 185 million shares listed, only 23.2 million are available for trade. Of those 291,000 were listed as short in mid-December.
What Happens Next?
If you’re going to swim with sharks, know how to get out of the pool. Investors who buy into HKD stock, in other words, need to watch every trade and be prepared to bail at a moment’s notice.
If you’re going to bet on a Chinese re-opening, you’re better off with a legitimate company like Alibaba Group Holding (NASDAQ:BABA).
On the date of publication, Dana Blankenhorn held long positions in BABA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
More From InvestorPlace
Buy This $5 Stock BEFORE This Apple Project Goes Live
The Best $1 Investment You Can Make Today
Early Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air”
It doesn’t matter if you have $500 or $5 million. Do this now.
The post Why Is AMTD Digital (HKD) Stock Up 80% Today? appeared first on InvestorPlace.
News Provided by InvestorPlace via QuoteMedia
Read More: https://investorshangout.com/recentnews/HKD#ixzz7pXK5wtUz
AMTD Digital Inc. (HKD) Stock Research Links
The majority of my post are the top 20% gainer! To decode them its (ticker ID, % Changed, Volume, Close price and Float) I typically put V,C&F as a prefix to that number and use K, M and B as a suffix (Kilo, Million & Billion) for volume and float. I may also use S for Support and R for Resistance.
I (Znewcar1) do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
I will not and cannot be held liable for any actions you take as a result of anything you read here.
I (Znewcar1) do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
I will not and cannot be held liable for any actions you take as a result of anything you read here.
