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Billionaire investor Chamath Palihapitiya’s Clover Health surged as much as 41% in premarket trading on Tuesday after becoming the most-discussed stock on Reddit’s WallStreetBets forum, which has been a key driver for the big rallies in shares of meme stocks such as GameStop and AMC in the past months.
Clover Health already closed 32.4% higher on Monday, which drove the shares to $11.92. It continued its rally during Tuesday’s premarket trading, soaring by as much as 41% at one point. At 7:58 am E.T. shares were quoted at $16.34, up 37.08%.
Clover Health has been a WallStreetBets favorite since it went live via a $3.7 billion SPAC in January, but its shares slid fairly consistently from its market debut. By mid-May, they traded as low as $6.82.
The drop almost caused a 17-year-old WallStreetBets fan to lose all of his savings after he had invested everything into Clover Health – in large part due to Palihapitiya’s reputation in the blank-check market.
Clover Health has taken over from movie-theater chain AMC as the most-talked about stock on WallStreetBets this week, according to SwaggyStocks.com, a website that tracks online chatter about stocks and investing. The vast majority of comments were positive, encouraging WallStreetBets members to buy into Clover Health.
Reddit user Broad-Inspector8905 raved about Clover Health stock, receiving over 1,700 upvotes – expressions of support – on his post saying that Clover Health was aiming to deliver the cheapest possible healthcare to Americans in contrast to other healthcare companies.
“I take it as this-if you purchase CLOV your taking a bet on america and the prosperous outcomes for a better healthcare system/provider. Shorting CLOV is unamerican and the suits that are doing such should be penalized by transferring there wealth into our pockets!”, the account wrote echoing the widespread sentiment amongst retail traders that they are democratizing investing and taking back power from institutions and governments.
Other WallStreetBets members claimed to be investing their entire life savings in Clover Health. Insider was not immediately able to verify if this was indeed the case.
In recent weeks, WallStreetBets members fueled the rally in meme-stock AMC Entertainment – leading to its executives making millions as they sold their shares during the surge.