One of the hottest new stocks on an American exchange isn’t American. It’s AMTD Digital (NYSE:HKD), based out of Hong Kong. Importantly, HKD stock also represents a metaverse play.

Shares were listed July 15 and doubled in value their first day. Then they kept doubling, to as much as $485 each at one point on July 29.

The bubble popped overnight. Early on Aug. 1 shares were trading below $300 each.

What’s the Big Idea?

The excitement is over AMTD’s digital platform, a “metaverse” it calls AMTD SpiderNet. The idea is to connect all AMTD’s financial operations and intellectual property into a controlled digital ecosystem.

SpiderNet was launched in February and is mainly used by fintech entrepreneurs and internet celebrities. It collects fees and commissions from both the sides in the ecosystem.

The money comes from

CK Hutchison, which founded parent company AMTD Group, and Li Ka-shing, a businessman with a net worth of $36 billion. His son, Victor Li Tzar-kuoi, now controls the CK Hutchison conglomerate, employing over 300,000 people.

AMTD Digital only raised $125 million in its IPO and has slowing revenue growth but high margins. Investors appear to like its business focus on Southeast Asia.

What Happens Next With HKD Stock?

Reporters and analysts all told readers that AMTD’s stock momentum is unsustainable. The stock’s behavior early on Aug. 1 justifies skepticism.

I’ve covered technology for over 40 years and AMTD is the most incomprehensible set of buzzwords and hype I’ve ever encountered. That doesn’t mean the company can’t succeed. It just means the current price guarantees success when the company has achieved very little.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.