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AMTD Digital (NYSE:HKD) stock flew onto traders' radars recently as it rallied hundreds of percentage points.

Cautious investors should investigate the company before taking a position, though. There's nothing special about AMTD Digital in particular as a business, and the share-price surge is likely due to a short squeeze.

If you're in the U.S., chances are pretty good that you never heard of AMTD Digital until a few days ago, if you're familiar with the company at all. Yet, a number of American stock traders are taking notice of AMTD Digital, and possibly buying the company's shares without conducting their due diligence.

As the old saying goes, it's important to know what you own. Besides, staying on the right side of the trade when there's a short squeeze in progress can be extremely difficult. For the vast majority of retail investors, then, it's probably wise to watch AMTD Digital from a distance but not get involved.

AMTD Digital Is Diversified… or Maybe Just Unfocused

To be honest, it's hard to pinpoint exactly what AMTD Digital does and what it's been up to lately. The company's news page is woefully out of date. I can tell you that the company's based in Hong Kong, and that AMTD Digital is a fintech firm in some capacity.

Let's see if we can decipher this word salad on AMTD Digital's investor relations page:

"As the fusion reactor at the core of the AMTD SpiderNet ecosystem, AMTD Digital… is a one-stop digital solutions platforms in Asia with businesses spanning multiple verticals, including digital financial services, digital media, content & marketing, SpiderNet ecosystem solutions, and digital investments."

There's more ad copy following this, but don't expect much more in the way of clarity. AMTD Digital does apparently have interests in digital investments, but the specifics on those investments are elusive.

HKD Stock Goes on a Wild Ride

Wall Street doesn't seem to care much about what AMTD Digital actually does, though. The focus has been on HKD's price action, which should remind us of 2021's meme-stock mania.

As InvestorPlace contributor Dana Blankenhorn explained, AMTD Digital's shares were first listed in the U.S. on July 15. They doubled in value on that first day and then just kept on doubling again and again.

Some of the excitement may be attributed to AMTD's digital platform, a "metaverse" called AMTD SpiderNet. Unsurprisingly, the web page dedicated to SpiderNet provides little if any useful explanation.

As HKD stock gained 3,200% in a month's time, sensible investors had every reason to start asking questions. Are Reddit traders behind this astounding rally? And, how will this saga end?

You Don't Have to Get Involved

AMTD Digital parent company AMTD Group has apparently distanced itself from the share-buying frenzy. If you're buying the shares at the current price, don't expect AMTD Group or AMTD Digital to be a cheerleader.

I'll defer to Blankenhorn's long-standing expertise in wrapping up this non-analysis of an odd company and an equally odd meme-stock rally. He concisely declared, "I've covered technology for over 40 years and AMTD is the most incomprehensible set of buzzwords and hype I've ever encountered."

Indeed, there's not much to comprehend here. It's perfectly fine to enjoy the spectacle that is HKD stock. It is what it is, and the sensible thing to do is to watch from a safe, lengthy distance.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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