Today, shares of Clover Health (NASDAQ:CLOV) are up big. Investors in CLOV stock are seeing gains of 16% today on volume that’s nearly triple the average.
Accordingly, today’s move has sparked a lot of interest in this stock. After all, Clover is still down roughly 30% year-to-date, as the company has been hit by various short reports. This stock has been losing momentum very quickly in recent months.
However, Clover Health has been a hot-button stock in recent days. Let’s dive into what’s driving interest in Clover Health today.
Short Squeeze Potential Driving CLOV Stock Higher Today
As fellow InvestorPlace writer William White pointed out in a recent piece, there’s a ton of social media chatter on this stock. Specifically, investors are focused on the short interest level of CLOV stock today. Reports that short interest hit 150% sent short-squeeze speculation to a new high. Those on Reddit and other social media platforms appear to have jumped on this opportunity in a big way.
There’s certainly evidence that short squeezes can work. We’ve seen this sort of scenario play out nicely for retail investors this year. Indeed, suggestions that there could be some sort of orchestrated squeeze appears to be enough to move any stock these days.
Today, Clover also announced its earnings date. The company is scheduled to report earnings on May 17, and investors appear to believe earnings could be much better than short-sellers suggest in their reports.
Thus, it appears short-squeeze speculation as well as what could turn out to be solid fundamentals are driving this stock today. Investors may view CLOV stock as an intriguing short-term buying opportunity before earnings. Given the volatile moves we’ve seen this week on earnings, speculators are likely to want to take advantage of these larger short-term swings. Such appears to be the case with Clover today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
