HKD Stock Alert: Why Is AMTD Digital Up 10% Today?

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  • AMTD Digital (HKD) stock rose 25% overnight. A wild early morning session sees it currently sitting at about 10% up.
  • The company runs a fashion magazine and produces movies in Hong Kong.
  • The stock is still trading below its two previous 2023 highs.
HKD stock - HKD Stock Alert: Why Is AMTD Digital Up 10% Today?

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AMTD Digital (NYSE:HKD) rose 25% in volatile pre-market trading this morning as traders tried to figure out what was happening in Hong Kong. Since the opening bell, HKD stock has been on a wild downward ride and currently sits at about 10% in the green.

Small, thinly traded Hong Kong stocks like Magic Empire Global (NASDAQ:MEGL), which was taken on a ride after its initial public offering (IPO) last year, are being rapidly pumped, then dumped, in Hong Kong.

HKD Stock: Hong Kong’s Speculative Frenzy

Bull and bear cases are to be made on the renewed speculative action.

The bull case is that it could be a reaction to the recent rise in U.S. tech stocks, which are up after earnings. And it could also represent new optimism for the Chinese economy, which would also be good news.

On the other hand, the U.S. run may be ending. The Chinese traders could be getting in and out while they can. Amazon (NASDAQ:AMZN), for instance, jumped over $13/share after it reported earnings on April 27, then fell hard after its earnings call and opened $2.50 below its Thursday close.

AMTD jumped earlier this month without reporting news and, until April 27, had been falling steadily in price. The company owns a French fashion publication called L’Officiel, which it is bringing to Asia. It also produces action movies in Hong Kong.

The latest move still has AMTD below its April 11 high, which in turn, is just one-third of a speculative run to almost $30 per share in early January. At that time, one American reporter called AMTD “the weirdest stock ever.”

What Happens Next?

AMTD may be “deeply unimpressive,” but there’s always excitement around speculation. It could mean a return to growth in Asia, or it could just be traders taking advantage of a rising market here to draw in some chumps.

On the date of publication, Dana Blankenhorn held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/04/hkd-stock-alert-why-is-amtd-digital-up-10-today/.

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