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6. Clover Health Investments, Corp. (NASDAQ:CLOV)

Share Price Performance Since July 2021 Start: -89.15%

Number of Hedge Fund Investors In Q1 2024: 12

Clover Health Investments, Corp. (NASDAQ:CLOV) is a healthcare company that provides coverage and technology services to patients and physicians. It is another firm that utilized the relatively shorter route of using a SPAC firm to go public in 2020. A little known fact about Clover Health Investments, Corp. (NASDAQ:CLOV) is that it was also another stock part of the meme stock mania of 2021. Its shares first dropped in 2021 after well known short seller Hindenberg Research claimed that the firm’s software offering Clover Assistant was under a Justice Department investigation. Clover Health Investments, Corp. (NASDAQ:CLOV) announced the day that it was under an SEC investigation. Following the disclosure, the stock. bled 46% until mid May, when hungry retail investors pumped up its price by 101% until early June. Later during the year, Merrill Lynch downgraded the stock and claimed that the firm was overvalued compared to its growth trajectory. Clover Health Investments, Corp. (NASDAQ:CLOV) also announced a $300 million stock offering in November 2021, and this didn’t bode well due to dilution concerns. Clover Health Investments, Corp. (NASDAQ:CLOV)’s revenue also fell by 41% annually in 2023 to $2 billion – removing the final crutch of revenue growth from the stock price.

However, Clover Health Investments, Corp. (NASDAQ:CLOV) did have some good news for investors during its Q1 2024 earnings call where management shared:

We have therefore, significantly improved our guidance for the full year 2024 to a range of positive $10 million to $30 million. Our profitability performance was driven by continued outperformance in our insurance offering fundamentals, including revenue growth and Medic management, as well as durable reductions in our adjusted SG&A. For insurance revenue, we are proud that we delivered strong year-over-year revenue growth of 8%, while also simultaneously expanding margins. This is a continued step forward in our commitment to grow revenues in a sustainable way. Improvements came from a strong focus on Clover Assistant product advancement, operational enhancements to improve the accuracy of our risk adjustment submissions, and a focus on member retention.

We’re proud of these improvements. And as a result, we are also raising our full year insurance revenue guidance to be between $1.3 billion and $1.35 billion.