AMTD Digital (NYSE:HKD) stock is climbing over 18% in early trading after advancing 35% yesterday.
Trading in the shares was paused twice yesterday morning due to volatility. Since no company-specific news that would explain the stock’s volatility has been reported, it appears that HKD has become a meme stock.
Meme Stocks Are Rebounding Slightly
Multiple other meme stocks are climbing a little again today. For example, GameStop (NYSE:GME) stock, which rose 1% yesterday, is up 3.3% today, while AMC Entertainment (NYSE:AMC) is adding 1% and Ocugen (NASDAQ:OCGN) has been fluctuating between red and green on its price chart this morning.
Perhaps some retail investors believe that the retreat of meme stocks is finally coming to an end, and they are “bottom fishing.” In other words, they are looking to buy meme stocks on weakness after many of them tumbled tremendously this year.
Background on HKD Stock
Hong Kong-based AMTD Digital is a “financial services incubator.” In other words, it supports early-stage fintech companies with investments, introductions to other potential partners, and “other resources.” AMTD is then paid by the start-ups with which it works.
AMTD Group (NYSE:AMTD), which is also based in Hong Kong, owns a majority stake in AMTD Digital. The latter company was founded in 2019. For its part, AMTD Group is an investment bank with a market capitalization of $455 million.
In fiscal 2022, which ended in April, AMTD Digital generated nearly $197 million of revenue, versus nearly $196 million in FY21. Last year, the company reported EBIT of $85.5 million, down from $129.4 million in FY21.
On the date of publication, Larry Ramer did not have (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.