Reddit Meme-Stock Traders cause Clover to Rally
Reddit Meme-stock trading, rallies another stock. Clover Health shares double in session.
Clover Health stock is the latest stock targeted by Reddit retail investors, specifically the WallStreetBets Reddit page with over 10 Million users. Clover Health is a Medicare insurance startup that recently went public from Chamath Palihapitiya’s SPAC. Tuesday morning shares surged more than 100%, and the stock had an unheard of trading volume with over 300 million shares just in the morning. This is 13 times its 30-day average.
The chat room’s claim to fame came from its Gamestop short squeeze, and recently causing an AMC Entertainment stock price surge. This came after the SEC released a statement Monday saying they’re keeping a close eye on the recent volatility in certain stocks in order to determine if there has been “any disruption of the market, manipulative trading, or other misconduct”.