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'Meme Stock' AMTD Digital Just Surpassed Goldman Sachs With a 22,000% Gain (bloomberg.com) 41

Posted by msmash from the watch-out dept.
The world, apparently, has a new financial giant. From a report: AMTD Digital, a Hong Kong-based company that listed in New York less than three weeks ago, has surged so much that its market value hit more than $310 billion as of Tuesday's close. That means the firm -- which develops digital businesses, including financial services -- is worth more than Bank of America, Morgan Stanley and Goldman Sachs Group, despite reporting just $25 million in revenue for the year ended April 2021. At least on paper, that makes it the third-biggest financial company in the world, trailing just JPMorgan Chase and Berkshire Hathaway. While those firms have a long list of shareholders, AMTD Digital has a convoluted ownership structure that ultimately leads to one key name: Calvin Choi, an ex-UBS Group AG banker, who's currently fighting an industry ban in Hong Kong for failing to disclose conflicts of interest.
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'Meme Stock' AMTD Digital Just Surpassed Goldman Sachs With a 22,000% Gain More

'Meme Stock' AMTD Digital Just Surpassed Goldman Sachs With a 22,000% Gain

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  • And fewer Mitch McConnells. We need people who both understand how to regulate an economy and are willing to do it for the benefit of everyone.

    I get it she's a nagging School marm, but this kind of crazy pump and dump is eventually going to completely fuck up our lives. The stock market will crash and the people who run things around here will take it out of our hides like they always do.

    We are still a republic. We can still change who we vote for. But that means that instead of voting for whoever h
    • The market is not going to crash because of some meme stocks. Relax.
      • aren't going to crash the economy either, right?

        • Re: (Score:2, Redundant)

          by thegarbz ( 1787294 )

          You are right, a "few" bad mortgages aren't going to crash anything. Why would they? You really need to group a large number of bad mortgages together in a group, and then get those groups grouped together in yet another group with an insanely high underlying real value (not this fictitious thing we're talking about here), while at the same time selling it as a low risk high grade investment to institutional investors in order to crash an economy.

          • And whoever modded me down really doesn't understand what caused the subprime mortgage crisis. Back to school with you.

        • Of course a few bad mortgages won't crash the economy. Why do you ask?

    • Re: (Score:3)

      by spun ( 1352 )

      It's important to note this is NOT a "meme stock." Retail had absolutely nothing to do with this insane run-up, this was all insiders and market makers. Actual "meme stock" traders are convinced this is yet another ploy to fuck retail somehow.

      • It's important to note this is NOT a "meme stock." Retail had absolutely nothing to do with this insane run-up, this was all insiders and market makers. Actual "meme stock" traders are convinced this is yet another ploy to fuck retail somehow.

        Do you have a source for that claim, because I can't find it? Reporting suggests this was a case of a short squeeze followed by retail https://www.msn.com/en-us/mone... [msn.com]

        • Re: (Score:2)

          by spun ( 1352 )

          Read any forum for retail investors. Everyone was quite surprised, no one was talking about it until it was a done deal. Contrast that with the forums response to GameStop or AMC.

          From what I have seen, most regular media outlets regularly spread disinformation about retail investors and meme stocks to help manipulate the market.

          I am not invested in any of these stocks personally, I am just fascinated by retail investors response to blatant white collar crime. As they say in the forums, "Hedgies r fukd." The

    • I used to think Elizabeth Warren was an advocate of the little guy, taking on a corrupt Wall Street. But then:

      * During a debate on the cost of education, she focused solely on lower the interest on education loans [senate.gov], instead of questioning unlimited cash being pumped into higher education in the form of student loans, and saddling students with the debt. She was a university professor and knows what side her bread is buttered on.

      * During congressional testimony from the head of the US central bank, she grands [senate.gov]

  • Hi, are they awake? This could be the proverbial last straw for Chinese stocks.

  • AMD ! (Score:4, Funny)

    by bettersheep ( 6768408 ) on Wednesday August 03, 2022 @04:31PM (#62760194)

    I said buy *AMD* !
     

  • hrm (Score:2)

    by jythie ( 914043 )
    So I wonder what volume of wash trading you have to do in order to get your market cap reported as that high.

    • It's an unrealistic valuation because it's nearly impossibly to sell off the stock and assets to get that value. As soon as stocks start selling off, the stock value will go down. So the value that one person would pay for one share is not the same thing as what people will pay for a million shares. It is entirely a fictional valuation that exists only on paper.

      So I have one rare Babe Ruth autographed baseball, I can get a good price for it. Now I have 10,000 not-so-rare Babe Ruth autographed baseball a

    • Just a single trade. The market cap is the outstanding number of shares times the price of the last trade.

  • Just a result of quantitative easing (Score:2, Insightful)

    by Anonymous Coward

    The fed pumping trillions into Wall Street makes all the numbers suspect, outright crazy.

  • Is this another crazy Reddit driven thing? (Score:3)

    by Zontar_Thing_From_Ve ( 949321 ) on Wednesday August 03, 2022 @04:42PM (#62760226)
    Does anybody know if Reddit is driving this? I'm an experienced investor. I've been in an investment club for years. Frankly, I sold all my China/Hong Kong related stocks this year because I'm pretty anti-China/Hong Kong at present. If you want to lose money, yeah, by all means invest there. My guess is there must have been some huge shorting of this stock because their balance sheet is kind of a joke for a foreign company in an IPO and a bunch of rich players figured the stock was going nowhere, so probably there were more shorted shares than actual shares available in the market.

    All I can do is warn people that the ride eventually ends when retail investors run out of money to prop it up. That could be tomorrow. It could be next week. But there is no real future in this stock.

    • Yep, WSB again. They are really are playing with fire, because their actions could well be interpreted as a pump and dump.

      • Have you read WSB? They have been calling it a pump and dump by citadel for the past few days. No memes, no hype, no gain posts. The same people invested in this shill stock have been tied to other fishy investments.
    • With a limited number of shares they can pay a game here by buying all the shares so the shorts cannot be covered. In such a game the short holders need to buy shares to cover their short positions and with no shares available the price skyrockets. This is where investing becomes a game with players on each side rather than depending on actual pricing and fundamental news. For the share holders the question to me is ok you can push the price up but how do you sell and make money as when you do it as a team

      • If you hold all the shares, you're only competing with yourself as a seller. The VW/Porsche situation. US regulators seem far more hostile to cornering than EU, it won't necessarily play out like that situation.

        • Well yes if you hold all the shares and others have to buy due to uncovered shorts then you can set the price where ever you want. That is the whole idea of the game.
      • HKD IPO in July. Options don't start for newly created companies for al teast 2-3 months after an IPO. If Options were involved much of WSB would be buying put options at this point.

        • Most likely brokers went naked short and are now praying the SEC will call it illegal cornering and bail them out, with a couple brokers with small exposure just paying the hostage fee to get out and setting the price.

          Wash trading is an alternative, but I think cornered naked shorts are the most likely explanation. SEC doesn't look kindly on cornering though. Calvin Choi could follow the Hunt brothers.

    • Re: (Score:3)

      by EvilSS ( 557649 )
      Doesn't look like it. Looking on /r/wallstreetbets it and HKD (which is somehow related, I don't and don't really want to know how) popped up on their radar yesterday for AMTD and three days ago HKD. Or at least that's what a reddit search sorted by newest is telling me. It was already shooting up when the first post hit the sub. Although CNN seems to be blaming them. They seem somewhat miffed they missed the large part of the ride up. I would be to. Nice opportunity if you got in and out quick.

    • I seen people in WSB mentioning that they don't know whats going on and that they are not involved.

      And since I do drop by WSB occasionally, I don't recall any big discussion about this stocks prior to the current events either.

  • Manipulating market caps (Score:4, Funny)

    by dlleigh ( 313922 ) on Wednesday August 03, 2022 @05:38PM (#62760400)

    Hey, if you buy one trillionth of a percent ownership stake in my new ***SUPERCOOLSTARTUP*** for one dollar, the market cap will hit 100 trillion dollars. The company will be worth more than the rest of the market combined!

    We've just taken over the world, all for a one dollar investment. How supercool is that?

  • Sounds like another scam when they grew so fast.

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