Clover Health Investments Corp shares jumped 109% on Tuesday. Clover Health’s shares were swarmed by retail investors, and were included in the ‘meme stock’ group. This prompted a frenzied rally for the stock.
Reported by Reuters, Wednesday (9/6/2021) retail investors have traded and bought shares of Clover Health worth more than US $ 14 billion. Exceeded the company’s overall stock market value of around US$9 billion.
The meme stock phenomenon itself began with GameStop Corp (GME.N) rising shares in January, and spread to cinema operator AMC Entertainment Holdings Inc in May.
Meme stocks are stocks that are central to buying by retail investors who throw stock recommendations at each other on social media. Initially, in the case of GameStop, stocks were ‘fried’ by the forum on Reddit, namely WallStreetBets.
Clover Health shares closed up 85.8 percent at US$ 22.15 per share after previously hitting a record high of US$ 24.93.
This Stock Had the Highest Trading Volume
This stock had the highest trading volume on any US exchange Tuesday, with at least more than 700 million shares changing hands versus an average of about 30 million over the past 10 days.
Clover Health shares have been rising slowly since late May. This stock is also said to have been the target of Hindenburg’s short seller report in February.
Clover Health itself has a capital backing from venture capital entrepreneur Chamath Palihapitiya. He took the company public through a merger with his check-blank company in October 2020.
Among other hot stocks on Tuesday, Wendy’s also jumped 26%. Initially, it was reported that this stock was hotly discussed on WallStreetBets after someone praised the hamburger seller’s Twitter profile.
GameStop shares also rose 7.1%. The digital gaming company just held its annual shareholder meeting and reported its quarterly results on Wednesday.
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