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Shares of Clover Health Investments, Corp. (CLOV) reached a 52-week high at $24.93 in pre-market Wednesday morning. This added to the total increase in the stock’s value of more than 110% in the past week amid Reddit’s push to sell shares. After the market opened, its price fell below Tuesday’s close at $22.15.
Founded in 2014 and headquartered in Tennessee, Clover Health is a Medicare-backed insurance vendor with 458 full-time employees that provides a preferred provider organization and health plans to Medicare-eligible consumers through its software platform.
The company gained attention recently when Redditors picked up on its potential for a short squeeze opportunity, and CLOV earned its “meme stock” status with the likes of AMC Entertainment (AMC), BlackBerry (BB), and GameStop (GME).
Among the company’s online evaluators is Chamath Palihapitiya, US venture capitalist and CEO of Social Capital, who placed a $16 million bet on the Special Purpose Acquisition Company (SPAC) that allowed Clover to go public. Palihapitiya, who is no stranger to the frenzy of the internet-backed market, saw its investment rise to $682 million after Tuesday’s gain of more than 30%.
The sentiment surrounding the recent rally contrasts starkly with that of early February when Hindenburg Research, a short selling-focused investment research firm that also publishes reports of alleged fraud by other companies, claimed Clover had lured investors to buy its stock without disclosing. On its ongoing investigations by the Ministry of Justice. This led to a downward spiral in Clover’s share price to as low as $6.31.
Previous targets include Hindenburg Nikola (NKLA) and Chinese crypto firm Ebang (EBON).
Thomas Home is a writer for Yahoo Finance. Follow him on Twitter: thomas_hum_
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