AMTD Digital (NASDAQ: HKD) stock price surged for two straight days, making it one of the best-performing shares in Wall Street. The shares surged to a high of $6.16, the highest point since August 28. At its peak, the stock was up by over 68% from the lowest point this year, giving it a market cap of over $940 million.
Why AMTD Digital shares jumpedAMTD Digital is a Hong Kong-based company that provides solutions like investment banking, asset management, and strategic investments. It is listed both in the United States and Singapore. It also runs AMTD SpiderNet, which is an ecosystem that serves fintech companies, banks, and technology firms.
AMTD made headlines a few years ago when it went public in New York, triggering one of the biggest short squeezes in the US. At its peak, the company had a market cap of over $300 billion and has now slipped below $1 billion.
Like other meme stocks of the time, AMTD and HKD share prices have plunged hard, leading to billions of dollars in losses. Some of the other companies that have struggled are the likes of GameStop, AMC Entertainment, and Bed Bath and Beyond.
On paper, though, AMTD Digital is doing well. Its annual results published in August revealed that its net profit jumped by 55.3% while its total assets jumped by 61.2%. As a result, the company announced a new $30 million share repurchase program, which will run until Q1 of 2024.
The most recent AMTD news was that it launched L’Officel Hong Kong as part of its entertainment business. It is a digital platform and a print magazine, which the company acquired in 2022. It has a presence in key countries like Singapore, Malaysia, Korea, Vietnam, and Thailand.
Still, there are risks for investing in AMTD Digital. For example, there is still too much that most American investors don’t know about the company. Unlike American companies, it does not publish regular quarterly results. It is also not followed by Wall Street analysts.
AMTD stock price forecast
Turning to the daily chart, we see that the HKD share price suddenly woke up after crashing to a record low. It has jumped from its all-time low of $3.66 to over $5. As it rose, the bullish volume jumped and the stock moved above the 25-day and 50-day moving averages.
The Smart Money Index (SMI) indicator has been in a downtrend. Therefore, I believe that the outlook for the stock is still bearish and that it could drop and retest the support at $3.66.
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