Clover Health Investments (NASDAQ: CLOV) dropped more than 23% yesterday, with many investors taking their profits and seemingly moving onto new targets. However, if the popular Reddit community, WallStreetBets, is to be believed, things are only just getting started.
In this article, we explain why Clover Health could still be in for some dramatic price movements. In addition, we explain where to buy Clover Health stock online so you can make low-cost trades and keep more of your profits. Simply scroll down to get started.
The best places to buy CLOV stock today
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If you want to invest in Clover Health shares, the easiest way to do this is to sign up to an online stockbroker, verify your account, fund it, then search for CLOV shares. Choose the number you want to buy, then lock in your trade.
However, not all stockbrokers are equal. Some offer superior fee structures and cleaner interfaces, making your CLOV trading experience cheaper and simpler. Here are our two top picks:
If you want to buy CLOV stock quickly, easily and inexpensively, eToro is the platform for you. As one of the world’s most popular stockbrokers, it has an excellent reputation and great features.
Plus500 offers the flexibility of CFD trading, meaning you don’t have to buy shares outright and can still gain exposure to the price of Clover Health shares.
If you want to see the other top brokers that support Clover Health trading in the UK and elsewhere, check out our page on the top brokers and trading platforms.
Should I buy CLOV shares?
Right now, you need to recognise that Clover Health is trading based on sentiment rather than fundamentals. Quite simply, CLOV’s financial performance and business model aren’t the primary focus.
Thanks to Reddit investors, the stock soared from $9 to nearly $30 in a matter of days for no reason other than its designation as a ‘meme stock’ with heavy institutional short positions held against it. While there was a significant pullback yesterday, market sentiment actually seems at an all-time high.
In the last 24 hours, Clover Health Investments has been mentioned a whopping 3,130 times on WallStreetBets alone; that is nearly triple its next closest competitor: AMC Entertainment.
The widespread sentiment amongst the retail investing community is that a short squeeze could be on the cards akin to that already seen with GameStop and AMC.
As of Tuesday, CLOV had a short interest of 43.5% of free float (normal shares that are freely traded by the market). While some shorters have already cut their losses, and websites now place short interest at 37%, it still remains one of the most heavily shorted stocks on the public market today, and this dynamic should not be underestimated.
Should I sell my CLOV stock now?
When you chose to invest in Clover Health, you should have recognised that it was a high-risk investment. If you are selling for a significant loss, it may be better to wait it out and see if a short squeeze materialises, whereas if you have turned a profit, selling them now before a further pullback would be understandable.
This is the risk with highly volatile, speculative stocks, and if you are a CLOV holder, you need to decide if this is money you can afford to lose. If it isn’t, get out now. If it is, the party may just be getting started.
What is Clover Health Investments?
Founded in Tennessee back in 2014, it is a health insurance provider and one of the fastest-growing Medicare Advantage insurers in North America.
Having gone public last year, the company is leveraging its software platform to facilitate health insurance for million of Medicare-eligible American citizens.
Clover Health price target
Two words: technical analysis. This isn’t value or growth investing; this is trading sentiment, which requires a keen focus on the finer details.
If you were expecting to find a definitive CLOV price target, you may be considering the wrong stock.
Social media reacts to CLOV short squeeze
Check out our news for more information on $CLOV and other top trending meme stocks.
67% of retail CFD accounts lose money
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