Is HKD a good Stonk to buy?

AMTD’s stock price has had a wild ride as a publicly traded company. The stock rose from a low of $14 in July to an all-time high of $2,350. Yes, that was a nearly 20,000% gain in a few days. At its peak, the company had a market capitalization of several billion dollars. At the time of writing, HKD stock is down 97% from its all-time high, giving it a market capitalization of around $13 billion. This makes it more valuable than Credit Suisse and American Airlines.

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Is HKD a good buy?

AMTD is a Hong Kong-based company that provides many financial services. For example, the company owns Airstar Bank, one of eight virtual banks in Hong Kong. He owns the bank together with Xiaomi, the smartphone giant. The company also owns AMTD Risk Solutions, which is an insurance brokerage provider.

Additionally, the company provides digital media, content and marketing, digital investments and the Spider Network ecosystem. AMTD achieved total revenue of over $25 billion in 2021, which makes its valuation fascinating. Indeed, at its peak, the company had a market cap of over $400 billion, making it bigger than giants like JP Morgan and Goldman Sachs.

In addition to the hype from retail traders, there are other reasons why the HKD stock price surged. On the one hand, its agreement with Xiaomi is important since the company is considered Apple in China. More importantly, before selling his shares, Li Ka Shing was a big investor in the company. Li is the second richest person in Hong Kong.

Therefore, it is clear that the AMTD stock price is highly overvalued and out of touch with reality. As such, as we’ve seen with other meme stocks like GameStop and AMC, the end of meme stocks are usually much lower.

AMTD stock price prediction

The hourly chart shows that the HKD stock price has been in a strong downtrend over the past few days. During this period, it crashed below the important resistance level at $380. It went below all the moving averages. A closer look at the chart shows that volume has started to dry up.

Therefore, it is likely that the stonk will continue lower as the sellers target the key support at $44.30, around 44% below the current level. A move above the resistance at $100 will invalidate the bearish view.

AMTD share price

Karen J. Nelson