AMTD Digital isn’t a meme stock.

Data: FactSet;  Graphic: Axios Visuals
Data: FactSet; Graphic: Axios Visuals

An obscure company began trading on July 15, at $7.80 per share. On August 3, it was trading, at one point, for $2,555.30 per share. It’s a pattern that looks very familiar – but make no mistake. AMTD Digital is not a meme store.

Why is this important: Sometimes markets act in inexplicable ways; this was one of those cases. But there’s no retail frenzy behind AMTD Digital’s stock symbol HKD, and there’s no Discord server or Reddit thread full of teenagers investing all their net worth in this bet. crazy and trying to drive him to the moon.

Between the lines: Consider Wednesday the busiest trading day. If you look at the minute-by-minute tape of that upper tick, however, “frenzied” barely describes what was going on.

  • There was a trade at 1:08 p.m. at $1,800 per share, then a six minute gap where nothing happened, then another trade at $2,090, then a five minute break, another trade at 2 $200, another six minutes, then the single trade of $2,555.30 at 1:25 p.m.
  • On Thursday afternoon, more than an hour passed without a single stock trading.

Be smart: AMTD Digital is a small Hong Kong company that has a separate listing in New York. Under no circumstances should the company as a whole ever be valued by extrapolation from a single odd trade in its US depositary stock.

The bottom line: Meme stocks act in weird but real ways — companies like AMC Theaters can raise real money from their meme status, and hedge funds like Melvin Capital can lose money if they end up in trouble. bad side of a meme trade.

  • AMTD Digital, on the other hand, is just plain odd. He’s seen a few odd trades, for reasons we can only guess. It is unlikely that great fortunes were made or lost. Either way, don’t blame the kids.

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