- Clover Health rose Monday after posting a revenue beat in its first-quarter results.
- Clover has been a Reddit darling after going public in a $3.7 billion SPAC deal in January.
- Shares of the Chamath Palihapitiya-backed health insurer have plummeted since going public.
- See more stories on Insider’s business page.
Clover, which sells private health plans for seniors in the Medicare Advantage market, reported revenue of $200.3 million in the quarter, topping the $193 million average estimate from two analysts, Markets Insider data showed. It also reported a net loss of $48.4 million for the quarter, a widening from the $28.2 million loss from the same time last year.
Shares of the Nashville, Tennessee-based company rose 3% as of 10:20 a.m.
Before the company posted its results pre-market, Clover jumped 11%, Bloomberg reported, as Redditors cheered the stock. After the company posted its revenue beat, the shares pared their gains and eventually started dropping before rising again before the market opened.
Clover enthusiasts on the Wall Street Bets Reddit page continued to cheer the stock. One member on the Wall Street Bets thread said, “Rock solid baby! Let’s go clov!” Another said, “We mooning today,” implying the stock would jump on the results.
Clover has been a Wall Street Bets darling and was listed as one of the “most anticipated earnings release” for the week, alongside other favorites. One teenager dumped thousands of dollars into the stock, once he saw it was backed by “SPAC king” and billionaire investor Chamath Palihapitiya, Bloomberg previously reported.
But shares of Clover had dropped 46.5% as of Friday close since the company went public in January in a $3.7 billion SPAC deal.
Shortly after going public, short-seller Hindenberg Research published a report accusing the company of misleading investors, customers, and the federal government, which caused shares to plummet. The company said it’s not in violation of any rules or regulations.
Not long after the report, Clover received a notice of investigation from the Securities and Exchange Commission, Reuters reported.