AMTD Digital (HKD) stock as much as tripled on Friday after the digital solutions platform posted a more than 10x year-over-year increase in its six-month revenue to $73.2 million.
In the earnings release, Feridun Hamdullahpur, the company’s chairman, also said HKD is “fully committed to deliver long-term values to all of our shareholders.”
Following the initial frenzy, HKD shares have pulled back in recent hours and are now up about 70% only versus their previous close.
What Helped AMTD Grow Its Revenue So Quickly
AMTD attributed its staggering 1,085% increase in revenue in the six months ending April 30 to the acquisition of The General Essentials Group (TGE).
TGE is a media and lifestyle conglomerate the NYSE-listed firm bought in October 2024. The transaction transformed its revenue mix and positioned it as a more diversified digital platform.
According to the company’s press release, TGE contributed materially to its media, entertainment, and hospitality segments, including fashion advertising, luxury publishing, and VIP services.
On Friday, AMTD Digital also committed to expanding its global footprint, further adding fuel to the HKD stock price rally.
Why HKD Shares Remain Super Risky to Own
Despite impressive growth metrics, investors must tread with caution on AMTD due to an apparent lack of cost discipline.
A sharp increase in expenses triggered a 52% year-over-year decline in the company’s six-month earnings per share (EPS) to $0.22, indicating profitability challenges.
Investors should also note that even after a massive rally on Friday, HKD is going for less than $5, which makes it a penny stock – a status often tied with volatility, limited liquidity, and speculative trading.
All in all, until AMTD demonstrates that it can scale efficiently and control costs, its stock’s appeal to serious investors will remain rather muted.
HKD Stock Does Not Receive Wall Street Coverage
Another red flag on HKD shares heading into 2026 is the absence of Wall Street coverage.
This signals limited institutional interest, lack of credible valuation benchmarks, and lower overall visibility for investors.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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