Clover Health (CLOV) could see a short squeeze soon

Clover Health (CLOV) could see a short squeeze soon

Shares of Clover Health (CLOV) is currently the talk of the town, recent data shows that the stock could see a short squeeze, similarly to the GameStop (GME) squeeze.

Clover Health has a short volume of around 1 million with around 6 million total shares available. This indicates a short volume ratio around 30%. Another reason is that short seller Hindenburg released a short report back in February. Hindenburg is an investigative firm who exposes deficiencies in companies which creates short pressure on each stock the release a report on.

Should you invest in Clover Health (CLOV)?

You should wait and see before investing in my opinion, there are some cycles that SPACs go through, typically when a target is announced the SPAC will skyrocket but as the merger date gets closer or goes through and starts trading, the price will begin to drop significantly by early investors and they start looking at the next SPAC to invest in.

Hedge funds do this too which takes a significant toll on the stock price of the SPAC. With SPAC hype dwindling, eyes will turn toward fundamentals, and that’s where there is more work to be done.