Clover Health Investments CorpCLOV 20%has popped up on the list of top trending stocks on r/WallStreetBets, the Reddit forum that conducted a short squeeze in shares ofGameStop CorpGME 0.89%earlier in the year.
What Happened:Shares of the Chamath Palihapitiya-backed health technology company closed 20% higher at $8.82 on Friday and rose another 2.38% in the after-hours trading to $9.03.
At press time, around midnight Monday, Clover was trending on the Reddit forum, at the number four spot, just behindTesla IncTSLA 0.13%in the list of WallStreetBets trending tickers as compiled by Swaggystocks.com.
Why It Matters:Clover attracted a short interest of 35.7% at press time, according to Highshortinterest.com, a sorted database of stocks that have short interest over 20%.
In January this year, highly shorted stocks of GameStop, along withAmerican Entertainment HoldingsAMC 5.66%, andNokia OyjNOK 1.09%, and otherssurged and saw surging activity on WallStreetBets.Clover could similarly see abig short squeeze, according to some.
In February, Clover was thetarget of short sellerHindenburg Research — the same firm that targetedNikola CorporationNKLA 3.29%last year leading to theouster of its CEO.
Hindenburg alleged in a report that Clover misled investors and is under investigation by the Department of Justice.
On Friday, the former director of the Center for Medicare and the principal deputy administrator of the Centers for Medicare & Medicaid Services during the Trump era — Demetrios Kouzoukas — joined Clover’s board of directions, Business Insiderreported.
In October, Sequoia Capital andAlphabet Inc’sGOOGL 0.11%GOOG 0.05%Google ventures-backed Clover went public through a merger with Palihapitiya’s Social Capital Hedosophia Holdings Corp III in October with anenterprise valuation of $3.7 billion.
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