Skip to content

‘The Mother of All Shorts’ Is Also an Extremely Risky Trade

  • AMTD Digital still trading more than 2,000% above IPO price
  • High borrowing costs, low float keeping short sellers at bay
Video player cover image
WATCH: Ishika Mookerjee reports on why some short sellers say AMTD Digital is risky to bet against.Source: Bloomberg
Updated on

By any conventional measure, AMTD Digital Inc. is one of the world’s most overvalued stocks.

The barely profitable Hong Kong financial services firm trades at more than 400 times its latest fiscal-year earnings, compared with about 6 times for Goldman Sachs Group Inc., according to Bloomberg-compiled data. Even after tumbling more than 90% from its peak in early August, AMTD Digital’s 2,221% gain since listing in New York five weeks ago rivals GameStop Corp.’s surge at the peak of meme-stock mania.