AMTD IDEA (NYSE:AMTD) stock is chest-deep into one of its strongest trading days ever. The company is up nearly 300% today, adding to an already lucrative week for the Hong Kong-based investment firm. Strangely, analysts and investors can’t seem to pin down a reason behind the jump.
AMTD IDEA is Wall Street’s latest hot commodity since the July 15 listing of its subsidiary, AMTD Digital (NYSE:HKD), on the New York Stock Exchange. The Korean financial conglomerate has been cashing in on the substantial investor interest in AMTD digital since its stock doubled in price on its initial public offering (IPO) date.
Indeed, the company has seen its share price go on something of a roller coaster the past few weeks as investors rally around both AMTD Digital and AMTD Idea. From just $1.60 per share Monday, AMTD stock trading close to $8.50 at one point on Tuesday afternoon.
Meanwhile, HKD tsock has been on something of a meteoric rise since its IPO. Currently, the company’s shares are up more than 250% for the day, trading at $2,100 per share. For context, on July 26, AMTD Digital was trading for just $53 per share.
What’s behind AMTD’s recent boom?
AMTD Stock Soars, Thanks Investors
AMTD Digital and AMTD IDEA are in essence two sides of the same coin. As such, it should come with little surprise that Digital’s recent jump has had an iterative effect on IDEA’s share price.
IDEA was founded in 2003 and functions as an investment bank. Digital, on the other hand, has been labeled as a new-age metaverse play intertwined with financial services.
With that said, both entities’ successes this week are largely unjustified. In an open letter titled “Thank you note to investors and our response to our latest ADS price performance,” the company acknowledges its stock rise hasn’t been for any particular reason. “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,” AMTD Digital stated Monday.
The company followed up today by thanking investors for boosting its share value in the letter.
It’s unclear when or if AMTD’s meteoric rise will come to an end. AMTD stock is one of the few bright spots on the market today, as the S&P 500 and Dow 30 eye losses of 0.35% and 0.85%, respectively.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.