Day traders on Reddit have pumped numerous stocks over the past few months. They have now turned their attention to Clover Health, with the company’s stock rising by over 100% at some point today.
Reddit traders turn to Clover Health
Reddit traders have been responsible for pumping a few stocks over the past year. The GameStop stock rally gained popularity and was covered by major news outlets globally. However, the day traders on Reddit also pumped other stocks, including AMC, despite the company taking a hit due to the closure of public places because of the pandemic.
The traders have now turned their attention to Clover Health. The company’s shares went up by over 100% earlier today. Shares of Clover Health, a Medicare insurance start-up that went public through Chamath Palihapitiya’s SPAC, rallied by 100% earlier today. This comes after recording a 32% surge in stock price yesterday.
At the time of this report, the company’s stock price is trading at $19.65, up by 65% over the past 24 hours. At the start of the US trading session, 300 million Clover Health shares were trading in the market, up by 13 million from yesterday. Its daily trading volume is also higher than the 30-day average volume of 22 million shares.
Clover Health’s stock price has been rallying thanks to the attention it has received from Reddit’s WallStreetBets forum. The forum now has over 10 million participants, and it is one of the largest gathering of day traders in the world.
Reddit users favor broken businesses
The Reddit day traders seem to favor struggling businesses and pumping their stock prices higher. It began with GameStop towards the end of last year, with the company struggling to stay afloat. The traders pumped its price by hundreds of percentages.
This was followed by AMC. The theater chain took a hit following the closure of public places due to the pandemic. AMC had to sell some of its assets to settle some debts. The traders pumped AMC’s price, with the stock rising by 110% in June alone.
The traders are also focusing on another stock. Wendy’s is up by 15% so far today, and it could rally higher if more people enter the market.