Clover Health, backed by Chamath Palihapitiya, climbs after earnings amid Wall Street Bets cheerleader talks
- Clover Health rose on Monday after posting beaten revenue in its first quarter results.
- Clover has been a Reddit darling after going public under a $ 3.7 billion PSPC deal in January.
- Shares of the Chamath-backed health insurer Palihapitiya have fallen since its IPO.
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One of Wall Streets Bets’ favorites, Clover Health rose after the health insurer reported slumped revenue in its first quarter results.
Clover, which sells private health plans for the elderly in the Medicare Advantage market, reported revenue of $ 200.3 million in the quarter, beating the average estimate of $ 193 million by two. analysts, according to data from Markets Insider. It also reported a net loss of $ 48.4 million for the quarter, a widening from the loss of $ 28.2 million in the same period last year.
Shares of the Nashville, Tennessee-based company rose 3% at 10:20 a.m.
Before the company released its pre-market results, Clover jumped 11%, Bloomberg reported, as Redditors applauded the action. After the company posted revenue, stocks slashed gains and eventually began to fall before recovering before the market opened.
Clover lovers on the Wall Street Paris Page Reddit continued to applaud the stock. A member of the Wall Street Bets thread said, “Rock solid baby! Let’s go clov!” Another said, “We’re getting on track today,” implying that action would jump on results.
Clover has been a Wall Street Bets darling and has been listed as one of the “Most Anticipated Results” of the week, alongside other favorites. A teenager threw thousands of dollars into the stock, once he saw he was backed by “King SPAC” and billionaire investor Chamath Palihapitiya, Bloomberg previously reported.
But Clover shares had fallen 46.5% at Friday’s close since the company went public in January for $ 3.7 billion. PSPC Agreement.
Shortly after its IPO, short seller Hindenberg Research released a report accusing the company of misleading investors, customers and the federal government, causing stocks to fall. The company said it was not violating any rules or regulations.
Shortly after the report, Clover received a notice of investigation from the Securities and Exchange Commission, Reuters reported.