Good Evening. After a choppy trading session on Wednesday that saw the major averages spend time on both sides of the flatline throughout the day, U.S. equities ended the day higher.
The S&P 500 was up 0.34%, the Dow was up 0.10%, and the Nasdaq was up 0.74% as Wall Street’s closing bell rang.
IT IS BACK AGAIN
AMTD Digital Inc.’s (HKD) US-listed shares jumped a record 312%, leading to numerous volatility-related trade halts. Around 1.5 million shares changed hands during the move, which was accompanied by a rush of buying activity and was more than 5,500% greater than the daily average over the previous 10 days. On paper, the jump increased the stock’s market value by close to $27 billion.
Some Background: Following a period of relative calm for the stock that lasted more than a month and saw the price limited to a maximum one-day move of 31% in either direction, Wednesday’s increase came almost two months after its initial public offering (IPO). Its first month of trading saw five distinct days with a change of at least 100%, which is startling for most publicly traded stocks.
In spite of this, the jump will not lessen the suffering of investors who purchased the stock at its top. Even with the significant one-day increase, AMTD Digital shares are still over 90% below their $1,679 closing high price from August.
Where is the interest coming from? Retail traders also appear to be intrigued by the shocking one-day move. The most traded stocks on the Fidelity platform on Wednesday included AMTD Digital’s stock. Another obscure Chinese company that was recently listed in the US and saw a frantic trading debut, Addentax Group Corp., was also included on the list of well-liked equities.
ALL IN FAVOR SAY AYE... BESIDES MUSK
Shareholders of Twitter Inc. (TWTR) approved billionaire Elon Musk’s proposed $44 billion takeover, opening the door for a trial to decide the fate of the deal the following month.
Tuesday’s first vote count showed that the majority of Twitter’s shareholders approved Elon Musk’s offer to buy the social networking business for $54.20 per share. In April, Musk made the offer, and since then, he has sought to revoke it. The board of Twitter, along with two well-known advisory companies, had urged stockholders to approve the purchase. Following the vote, there was minimal movement in the stock, which finished at $41.74, much below Musk’s suggested price.
However… Shareholder consent was necessary to complete the acquisition, its completion is far from guaranteed. By claiming that Twitter misled him about the size of the company’s user base and the number of bots and spam accounts, Musk announced in July that he was canceling the arrangement. These allegations were denied, and Twitter sued Musk in Delaware to compel him to finish the deal. The corporation was then sued again by Musk.