The stock market valuation of an obscure Hong Kong company has soared in recent days for no apparent reason.

Last month, AMTD Digital debuted on the New York Stock Exchange at $7.80 per share.

The firm’s shares have been on a rollercoaster ride this week, closing at $1,100 on Wednesday.

Some analysts have compared AMTD Digital’s sudden growth in value to “meme stocks,” which garner appeal among individual investors through social media.

The trading of the company’s shares has been especially tumultuous this week, as its market capitalization surpassed $300 billion on Tuesday.

This means that AMTD Digital briefly surpassed Alibaba’s stock market capitalization on the New York Stock Exchange.

In Wednesday’s trading, its worth decreased by more than 30 percent but remained greater than Disney’s.

On Monday, AMTD Digital thanked investors and reported “considerable market volatility.”

The corporation is also actively monitoring the market for any unexpected trading activities or anomalies, according to the statement.

AMTD Digital provides services for the development of financial services technology for online enterprises. The company had 50 employees as of the end of February this year, according to a filing with the stock exchange.

According to a regulatory filing, its digital financial services sector generated just over $25 million in income last year primarily from fees and commissions.

On the company’s website, a video with a space theme displays the company’s digital service offerings.

AMTD Digital is a one-stop digital solutions platform in Asia with businesses covering numerous sectors, such as digital financial services, digital media, content & marketing, SpiderNet ecosystem solutions, and digital investments, according to the organization’s website.

Some analysts have compared the value increase of AMTD Digital to so-called “meme stocks.” Meme stock trading is frequently very speculative and volatile because of the nature of its popularity.

The shares of US shop GameStop and theatre company AMC were two of the most prominent meme stocks whose prices soared last year.

Dan Ives, managing director of Wedbush Securities, told, “This is a significant conundrum and demonstrates that the era of meme stocks is not done with a $300bn market size.”

“In a large risk-off market in 2022, it is baffling that this meme dynamic can still occur, but it has, and Wall Street is closely monitoring this latest fad,” he added.