In fact, this health insurance technology company was one of the most-discussed stocks on Reddit this week. The stock rose 20% on Tuesday and 9.5% on Wednesday as Reddit traders pushed its value up after talk of the company becoming a target of a short squeeze. Even Chamath Palihapitiya, the venture capitalist behind the company, discouraged traders from buying the stock due to being a short squeeze target.
Retail traders nonetheless kept pushing its price higher. While the company could have a great future ahead of it, I would advise investing in other health insurance stocks, as the volatile nature of CLOV’s price swings may be too high for risk averse investors. Companies such as Molina Healthcare Inc . (MOH), UnitedHealth Group Inc. (NYSE:UNH), and Cigna Corporation (CI) are more established and rank highly in our proprietary POWR Ratings system.