Clover Health Short Sellers Lost $502M On Tuesday
Wayne Duggan, 09 June 2021
Love it or hate it, Medicare insurance technology company Clover Health Investments Corp CLOV is the latest Reddit short squeeze stock ripping higher this week.
The stock gained 86% on heavy volume Tuesday as a massive short squeeze continued, and S3 Partners analyst Ihor Dusaniwsky said Clover short sellers are racking up major losses.
What Happened? Since completing its highly anticipated SPAC merger back in January, Clover was a major disappointment for investors from day one.
In fact, the stock spent much of the last three months trading below $10 per share. In May, Clover reported just 18% revenue growth in the first quarter and a net loss of $48.4 million.
Despite these underwhelming numbers, Clover shares have skyrocketed more than 127% in the last month, driven in large part by a spectacular short squeeze.
