IPOB Stock – Over 35% Increase Intraday Explanation
- The stock price of Clover Health Investments Corp (NASDAQ: CLOV) increased by over 35% during intraday trading. This is why it happened.
The stock price of Clover Health Investments Corp (NASDAQ: CLOV) increased by over 35% during intraday trading. One of the biggest reasons for the stock price increase has to do with a short squeeze.
According to FinViz, Clover Health has a higher-than-average short interest percentage. One of the reasons why Clover Health has become a short squeeze favorite is due to the company being linked to outspoken entrepreneur Chamath Palihapitiya. Clover Health went public through a reverse merger with Palihapitiya’s special purposes acquisition company (SPAC) Social Capital Hedosophia Holdings Corp. III a few months ago.
Plus investors who like to short squeeze stocks also seem to despise Hindenburg Research. And Hindenburg published a comprehensive report against Clover Health back in February.Apple-converted-space”>
Hindenburg noted that Clover Health’s Clover Assistant was being investigated by the Department of Justice. Clover Health acknowledged that it did receive a request from information from the SEC and Justice Department, which led to a stock price drop.
However, the stock price recently also picked up due to the company announcing that Demetrios Kouzakas has joined the company’s board of directors. Over the last four years, until January 2021, Kouzoukas served as the Director of the Center for Medicare and the Principal Deputy Administrator of the Centers for Medicare & Medicaid Services (CMS). And in those roles, he oversaw all operations and policy development for the Medicare Fee-for-Service Program and the Medicare Advantage and Medicare Prescription Drug Programs.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.