By Dhirendra Tripathi
Investing.com -- Shares of Clover Health (NASDAQ:CLOV), the latest addition to the meme-stock craze surged more than 11% in premarket trade on Wednesday, a day after retail traders in online discussion forums sent its stock zooming 86% to a record high.
Medicare-backed insurance seller Clover Health has emerged as the new favorite of retail traders, who realized it is one of the shorted stocks across U.S. exchanges.
Bearish bets in Clover have been steadily climbing since March and now stand at over $580 million or 44% of the public float, according to data from S3 Partners, Bloomberg said.
Clover’s two-day gains have erased five months of losses in the stock. Clover is backed by venture capitalist Chamath Palihapitiya who has promoted dozens of SPACs.
Shares of AMC Entertainment (NYSE:AMC) were down 4%, while shares in video game retailer GameStop (NYSE:GME) were up around 3%, while U.S.-listed shares of BlackBerry (NYSE:BB) were down 3%.
Workhorse Group (NASDAQ:WKHS) was up 12%, Wendy’s (NASDAQ:WEN) gained 2%, shrugging off a downgrade from Stifel and Virgin Galactic (NYSE:SPCE) was up around 2%.