Markets

Clover Health Slides 23% as Reddit Trade Finds New Targets

Source: Nasdaq

Shares of Clover Health ended Wednesday down more than 23%, following a steep run-up earlier this week.

Clover slipped to $16.92 when the day ended as retail investors on Reddit set their sights on other targets. The stock rose as high as $28.85 per share earlier in the session.

Meanwhile, other so-called meme stocks were catching a bid on Wednesday, with Clean Energy Fuels surging.

Clover's stock rose 86% on Tuesday and was up more than 100% during the session at one point. Shares also jumped 32% on Monday.

The stock had struggled after a short-seller report from Hindenburg Research in February. More than 40% of the stock was sold short as of Tuesday, according to S3 Partners, which makes Clover a target for retail traders who want to cause a short squeeze.

Prior to becoming the focus of retail traders, Clover often had a daily trading volume below 10 million. On Tuesday, its shares changed hands more than 700 million times.

Clover went public last year through a merger with a special purpose acquisition vehicle. The company is one of many SPAC-related deals involving billionaire investor Chamath Palihapitiya.

The stock is up 88% on the week through Wednesday's close.

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