The drama of retail investors forcing Wall Street into a short squeeze is far from over.
Last Wednesday, AMC closed up 95.5%, but in the following four trading days, the stock dropped by 12%. You might think that retail investors lost again, but they had already shifted their positions.
Last night, 'retail investors' new favorite' Clover Health surged more than 100% at one point, closing up 85.8% at $22.15, with a 7.5% additional increase in after-hours trading. FactSet data shows that at the close, the trading volume of the stock had exceeded 0.65 billion shares, 30 times more than the 30-day average trading volume of 22 million shares. At the close, over 0.715 billion shares had changed hands.
In addition to Clover Health, the parent company ContextLogicInc of the American version of PDD, Wish, surged 50%, and rose another 30% after hours. The fast food chain brand, Wendy's, also closed up by 25.8%. However, GameStop and AMC only rose by 7% and 0.1% respectively.
During the previous few large-scale retail investor short squeezes, Clover Health remained unheard of. What is the background of this company?
1. Retail investors' "new favorite": Clover Health
Clover Health is a Medicare Advantage insurance company established in 2013. The so-called Medicare Advantage is a Medicare plan for people over 65 in the USA, with CMS transferring premium payments to commercial insurance companies for operation...