Redditors Boost Company's Stock Price In One Month To Become A Bigger Company Than Coca-Cola

A small company you have never heard of has become one of the most valuable entities in the entire world.

Just like GameStop, AMTD Digital has seen its stock shoot through the roof over recent weeks, thanks to Reddit.

Since the investment firm went public last month, stock prices have risen by over 20,000 percent.

Back in mid-July, stocks in the firm were worth $7.80 a piece, however, they are now worth a colossal $1,750, bringing the firm's valuation to $323.83 billion (correct at the time of writing).

To put that into perspective, it is now the 23rd most valuable company in the world, above the likes of Coca-Cola, Samsung and even Shell.

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Surprising, right? Well, even bosses at AMTD have been a little taken aback by the meteoric rise.

In a statement addressing it, a spokesperson said: "During the period since our initial public offering, the Company noted significant volatility in our ADS price and, also observed some very active trading volume.

"To our knowledge, there are no material circumstances, events nor other matters relating to our Company’s business and operating activities since the IPO date.

"The Company is also monitoring the market closely for any unusual trading activities or abnormalities... "

It seems that it can, to some extent at least, be traced back to investors on Reddit forums, who have been pumping their money into AMTD's stock stock.

One user said: "I bought at $47 just sold at $920. What the literal f**k is even happening?"

Another replied: "Anyone else feel like there is almost no information and this is just skyrocketing, got it for 160, sold at 250$ and it's just insane that it's growing like this."

While another added: "Just made 8k on her."

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AMTD's rise has led many to draw parallels with the spike in GameStop stock last year.

In just 12 months, the firm's stock surged by nearly 9,000 percent.

But rather than a sudden rise in promising prospects inviting new investors – it was the economic equivalent of a mass ‘f**k you’ to hedge fund operators and major financiers, who were trying to make money from its demise.

Prior to this, market demand was low. So, as shareholders continued to sell, managers of hedge funds looked to ‘short’ the stock. Basically, this is where someone bets on a company’s failure.

And after hearing about this, a band of online investors came together to raise GameStop's stock price, thus causing hedge funds to lose money. A lot of money.

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Dominic Smithers

Dominic Smithers is the News/Agenda Desk Lead, covering the latest trends and breaking stories. After graduating from the University of Leeds with a degree in French and History, he went on to write for the Manchester Evening News, the Accrington Observer and the Macclesfield Express. So as you can imagine, he’s spent many a night wondering just how useful that second language has been. But c'est la vie.

@SmithersDom