AMTD Stock & Its Metaverse Banking Ecosystem

AMTD Stock

As one of today’s hottest penny stocks, AMTD IDEA Group (NYSE: AMTD) is soaring to new highs after reaching a new 52-week high of $12.9. This run is mainly triggered by the company’s subsidiary AMTD Digital Inc. (NYSE: HKD) which soared to almost $2600 – a 16475% increase since its IPO last July. With this in mind, many investors are bullish AMTD stock could continue reaching new highs in sympathy with HKD stock.

AMTD Stock News

A widely renowned financial institution, AMTD is considered to be the number 1 independent investment banking firm in Asia based on the number and the aggregate size of its completed IPOs in Hong Kong and the US. At the same time, AMTD is the largest independent asset management firm in Asia serving PRC regional banks and new economy companies. Unlike other global and Chinese firms in Hong Kong, AMTD has a competitive advantage thanks to its access to Asia’s tycoon families and its significant execution efficiency. 

Looking to cement its status as a premier financial institution, AMTD and its subsidiaries are joining the metaverse to capitalize on the growing interest in the metaverse. With this in mind, the company has been developing its AMTD SpiderNet by aligning itself with clients, shareholders, and investee companies. To facilitate its venture into the metaverse, AMTD owns land in The Sandbox and plans to be present in other promising metaverses. The AMTD SpiderNet World in the metaverse will be composed of several specialized districts.

The Business District is where AMTD’s businesses and tools will be located in addition to partners like PolicyPal, Capbridge Financials, as well as FOMO Pay. Since this district will offer a suite of decentralized services to its users, it is expected to be a major part of this metaverse. Meanwhile, AMTD will partner with Sharetimes to utilize its IP platform in serving influencers in China to create comics, games, filmas, novels, and music. In light of these features, AMTD’s metaverse plans could allow the company to emerge as a major player in DeFi applications.  

In addition, the metaverse will include the Knowledge district which will be the metaverse home for the AMTD FinTech Center of PolyU Faculty of Business. As this district is planned to be a hub for knowledge and contents, AMTD will utilize its JV platform AK73 and work with 36Kr (NASDAQ: KRKR) to provide metaverse advisory to new entrepreneurs and provide them with knowledge in the web3 world. In this way, this district could have major success with metaverse and web3 enthusiasts. 

As for Entertainment and Lifestyle District, AMTD will utilize its subsidiary – AMTD Infinity Space Network – to produce films and digital music content in connection with its lifestyle and hotel zone. In the meantime, AMTD owns the iClub AMTD Hotel in Hong Kong and Oakwood Premier AMTD Hotel in Singapore. With this in mind, the company intends to announce other AMTD hotels in the near future in the physical world and its metaverse lands. Through these districts, AMTD has the potential to become a major player in the metaverse industry. In light of this, AMTD stock could be poised to reach new highs upon the introduction of this metaverse.

Aiming to further grow its business, AMTD acquired a 97.1% interest in AMTD Digital Inc – a digital platform that provides financial, media, and investment solutions. At the same time, AMTD Digital offers digital banking and insurance technology platforms. In this way, acquiring AMTD Digital allows AMTD to develop its SpiderNet ecosystem. Considering this subsidiary’s potential, AMTD Digital listed on the NYSE after its IPO last July under the ticker HKD at a price of $7.8. With the company owning 88.7% of HKD’s shares following its IPO, AMTD could be an intriguing investment considering its PPS.

On that note, HKD stock has been one of the hottest plays lately as it soared to nearly $2600. In light of this, AMTD stock and KRKR stock ran in sympathy with HKD thanks to their involvement with the company. Based on this, AMTD stock reached a new 52-week high of $12.9 as well as KRKR stock which reached a high of $2.39. Although there is no apparent reason for such a run, some investors are speculating that HKD stock’s surge could be due to hedge funds shorting the stock since its IPO was relatively recent. Despite these speculations, AMTD stock could be a profitable investment as long as HKD stock continues to reach new highs.

Media Sentiment

@DavinciOTC is bullish HKD stock could further run – allowing AMTD stock to run in sympathy.

@SPACpicks is highlighting AMTD stock’s high cost to borrow which could be a sign of a potential short squeeze.

Technical Analysis

AMTD stock chart

AMTD stock is currently trading at $7 and has supports at 3.20 and 1.45. AMTD also shows resistances near 8 and 12.9. In light of HKD stock’s parabolic run, AMTD stock has been gaining momentum since HKD is the company’s subsidiary – triggering a 550% run. With this in mind, AMTD recently dropped below $8 which acted as a support during the stock’s run. Based on this, AMTD could further drop to fill the gap near $2. However, a golden cross of the MAs recently occurred which could be a sign of a continuation. 

As the stock is extremely volatile at the moment, investors could watch HKD stock price movement before entering a position in AMTD stock since HKD is the main driver for AMTD’s surge. With this in mind, AMTD stock could be extremely overvalued at its current PPS – making it a potentially profitable short as we alerted in our alerts room when the stock was at $11 and dropped to $8. 

AMTD stock chart

After the stock reached a new 52-week high at $12.9, accumulation is on a steep downward trend. Meanwhile, the MACD is bullish to the upside. The RSI cooled off from 95 to 70 indicating that AMTD stock is overbought. Based on this, AMTD stock could drop momentarily to allow these indicators to reset before setting itself for a second leg if HKD stock continues climbing.  

AMTD Stock Forecast

With the company striving to build its SpiderNet World in the metaverse, AMTD could be a pioneer in metaverse banking. With this in mind, the districts comprising AMTD’s metaverse could attract several users since these districts could be appealing to metaverse enthusiasts. While the company is still developing its SpiderNet World, AMTD stock is emerging as one of the most profitable plays in today’s market thanks to its 500% run in sympathy with HKD stock. Considering that AMTD holds an 88.7% interest in HKD, AMTD could be overvalued since its subsidiary is now onw of the most valuable companies at its current market cap of $310.6 billion. Although it is hard to predict HKD stock’s movement thanks to its extreme volatility, AMTD stock is one to watch for another sympathy run with its subsidiary.

If you have questions about AMTD stock and where it could be heading next feel free to reach out to us in our free alerts room!

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