AMTD Digital Plunges Nearly 50%—Stay Away From This ‘Absolute Scam,’ Expert Warns
Aug 4, 2022
Story by Sergei Klebnikov: Shares of Hong Kong fintech firm AMTD Digital continued to plunge on Thursday, crashing for a second day in a row after rising more than 21,000% since its July IPO, with experts calling it a new meme stock and warning investors to stay away from the stock as its valuation looks like “an absolute scam.”
“AMTD feels very ‘memesque,’” says Jim Osman, CEO of research firm The Edge Consulting Group, who adds that “on a valuation basis, it’s ludicrous, but as we’ve seen in the last two years, valuations on meme stocks count for nothing.” AMTD’s sky-high valuation, especially for a company with little revenue (just $25 million in 2021), looks like “an absolute scam,” says Osman. “The business isn’t a great business and we would advise investors to stay away,” he adds.