This morning the SPAC (special purpose acquisition company) Clover Health Investments Corp (NASDAQ:CLOV) has seen its stock jump by 11%. There has been no news about the company this morning.
The company is backed by Chamath Palihapitiya and like many of the companies backed by him, Clover Health has performed poorly. In fact, it is one of the worst-performing SPAC stocks at this point. Up until April 26, the stock had declined by 50% from its all-time highest level.
The company is involved in artificial intelligence and data analytics. However, it is focussed on leveraging those skills to disrupt the lucrative healthcare insurance space. One of the important reasons behind the recent fall in the Clover Health stock is a short-seller report that was published by Hindenburg.
Hindenburg had earlier exposed Nikola and hence, its report is not to be scoffed at. However, the allegations were about misleading marketing, which is not a particularly serious offence. At this point, it remains to be seen if this morning’s rally can spark a recovery in the stock.
At the time of writing, CLOV stock is up by 10.93% to $10.25 after a session high of $10.59.
Biotech, Tech, and Crypto reporter
Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.