Not long ago, holding company AMTD IDEA Group (NYSE:AMTD) stock rose from obscurity.
AMTD Digital (NYSE:HKD), the company’s subsidiary, was probably the target of a massive short squeeze. Traders should only consider AMTD stock if they’re prepared for high volatility.
AMTD IDEA Group is a Hong Kong-headquartered company that’s also known as AMTD International. Chances are, if you’re an American stock trader, this company wasn’t on your radar until recently, if at all.
Suddenly, AMTD IDEA Group is garnering attention on Wall Street, and possibly also among the Reddit group r/WallStreetBets. It’s an interesting company even beyond the meme-stock implications. So, if you’re prepared to take on some risk, it’s a great time to conduct some due diligence on AMTD IDEA Group.
AMTD IDEA Group
What’s Happening with AMTD Stock?
AMTD stock has been around for at least a couple of years, and overall, it hasn’t been a spectacular performer. However, AMTD Digital rocketed higher on its first day of public trading in the U.S., July 15. The AMTD Idea Group share price rallied as well, albeit not quite as dramatically.
Both stocks had another fast run-up in early August. Meme stocks were in vogue again during this time. So, it’s possible that AMTD Idea Group was targeted by social-media traders for a short squeeze.
After all, AMTD stock is low-priced, which is a characteristic sign of a potential short-squeeze candidate. Plus, there wasn’t really any company-specific news to justify a share-price move from $1.60 to $12.90.
Also, it’s been reported that the related HKD stock was recently “the most popular mention on Reddit’s WallStreetBets chat room.” So, again, we’re seeing the signs of a short squeeze here.
AMTD IDEA Group Is an Interesting, Diversified Business
If we can look past the meme-stock implications for a moment, we can see that AMTD Idea Group is actually an intriguing company. It’s been around since 2003 and touts itself as the “No. 1 independent investment banking firm in Asia.”
That might be an exaggeration, but investors can at least appreciate the company’s ‘‘AMTD SpiderNet’’ approach to business-building. With this approach, AMTD Idea Group focuses on “innovative internet platforms, financial technology companies, other new economy companies, and other financial institutions.”
For now at least, the holding company’s most well-known subsidiary on Wall Street is AMTD Digital. That business describes itself as a “one-stop digital solutions” platform involved in “digital financial services, digital media, content & marketing, SpiderNet ecosystem solutions, and digital investments.”
Admittedly, it’s somewhat difficult to pin down specifics with AMTD IDEA Group and AMTD Digital. Still, long-term investors might anticipate decent returns over time if they’re bullish on China’s technology and financial sectors.
What You Can Do Now
AMTD stock is likely to remain volatile for a while. If you’re not prepared to ride it in both directions, it’s probably wise to stay out of the trade.
If you’re in the mood to take a small but high-risk position, though, then there may be an intriguing trade here. AMTD IDEA Group may lack some clarify, but it seems to offer diversification for investors seeking exposure to a unique China-based business venture.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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