Today, Clover Health (NASDAQ:CLOV) is a de-SPAC (special purpose acquisition company) that’s making headlines. Shares of CLOV stock are currently approximately 4% at the time of writing on a relatively muted day in terms of price action.
This 4% move may not seem like much. However, over the past five trading days, CLOV stock has appreciated nearly 13% as sentiment has improved among various speculative hypergrowth plays.
A company that’s been hit hard by short-sellers this year, Clover Health has fallen out of favor among many investors. Since Hindenburg Research published its short report on CLOV stock in early February, shares of this de-SPAC company have lost nearly 40% of their value.
That said, one investor’s concern over short-sellers is another investor’s reason to buy.
Let’s dive into why Clover Health is on the move today.
CLOV Stock Surges As Retail Investor Sentiment Picks Up
Given the outsized short interest in CLOV stock in recent months, investors appear to be taking one of two views.
On the one hand, these short-sellers raise valid points. Indeed, any time a short-seller comes out with a detailed report, investors can get spooked. Accordingly, CLOV stock is one that’s definitely got some hair on it.
On the other hand, high short interest has turned out to be a good thing recently. Investors betting on the next short squeeze may indeed look at CLOV stock favorably. Accordingly, investors on Reddit’s r/WallStreetBets forum increasingly appear to be focusing in on Clover’s short interest ratio as a percentage of total float as a positive.
Investor sentiment around Clover Health remains strong. Indeed, social-media-driven investing has been a gamechanger of late. And right now, it appears the apes are bullish on CLOV stock.
Where will Clover Health go from here? It may be too soon to tell. However, this company’s recent price action makes Clover Health a stock to watch in the coming weeks.
On the date of publication, Chris MacDonald 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.
