Jim Cramer on moves from meme stocks Clover Health and ContextLogic


Shares of Clover Health surged in premarket trading on Wednesday, continuing a dramatic move for a Medicare insurance stock that has become a favorite of traders on Reddit. Clover went public last year through a merger with a special purpose acquisition vehicle. The company is one of many SPAC-related deals involving billionaire investor Chamath Palihapitiya. CNBC’s Jim Cramer, Carl Quintanilla and David Faber discuss. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6

Passionate day traders glued to their Reddit message boards have found their new favorite target — Clover Health — pushing the shares up triple digits at one point Tuesday.

The Medicare insurance start-up that went public via Chamath Palihapitiya’s SPAC jumped more than 100% on Tuesday after surging 32% in the previous session. The stock closed off the highest level of the day, but still registered a gain of 86%.

By afternoon trading, Clover had already traded over 650 million shares, 30 times more than its 30-day average volume of 22 million shares, according to FactSet. By the closing bell on Wall Street, more than 720 million shares had changed hands.

Chatter about Clover grew on Reddit’s WallStreetBets forum, which now has more than 10 million participants. Clover became the most mentioned name in the infamous chatroom on Tuesday, according to QuiverQuant. Reddit traders have been all over AMC Entertainment in the past week as traders piled into shares and call options of the movie theater chain and drove the stock up more than 110% this month.

A short squeeze could be at play for Clover Health, which has 43.5% of its float shares sold short, according to data from S3 Partners. That compares with about 18% short interest in AMC. When a heavily shorted stock suddenly jumps high, short sellers are forced to buy back shares and close their short position to cut losses.

Retail traders on Reddit are encouraging each other to take advantage of the big short interest in Clover and aim to squeeze out short sellers.

“This looks like the perfect setup for a combined short and gamma squeeze. I see no reason why CLOV couldn’t reach the same price point as AMC did last week ([more than]$70). It might even go higher than that,” one trending Reddit post said Tuesday.

Earlier this year, Clover shares tumbled after short seller Hindenburg published a scathing report that called the company a “broken business.” Clover said in February that it received a notice of investigation from the Securities and Exchange Commission and that it intends to cooperate.

Short sellers have been adding to their bearish positions as the stock recovered from the initial pullback following the SEC investigation news. Over the last 30 days, shares shorted has increased by about 25%, according to S3.

“Short sellers look to be shorting into a rising market and an overheated stock, looking for a pullback off of these elevated levels,” said Ihor Dusaniwsky of S3 Partners. “But shorting into a rising market produces mark-to-market losses, and today’s price spike has resulted in big red numbers for short sellers.”

Shorts are down $502 million in mark-to-market losses after Tuesday’s rally, according to S3.

Meanwhile, Wendy’s is also getting love from Reddit traders as its shares gained more than 25% on Tuesday alone.

The restaurant chain in May reported better-than-expected earnings and raised its forecast for the year.

GameStop, the star of the show during the January trading mania, climbed 7% on Tuesday, while AMC Entertainment closed flat.

The SEC said Monday it’s keeping a close eye on the recent wild trading in certain stocks to determine if there have been “any disruptions of the market, manipulative trading, or other misconduct.”

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

`Me-Too’ Movement Aspect of Bangladesh

Sexual haressment is common news in our country. Now it’s invreases day by day. other Bangladeh is a 3rd world and huge population country. Sexual harresment is the common news in this country.Woment silent about sexual occurance is the common cause. for this reson #Me-too is a social movement which is increases stand against sexual harrasment.

Proven Methods To Stop Your Child From Breastfeeding

I’m no mother yet but I interviewed mothers who have successfully stop their child from continuing breastfeeding. You have must hear that breastfeeding after two years is not good for both the child and the mom. This is why you need to stop your child from breastfeed when he reach the age of two. On this article, I outlined some of the methods use by moms to stop their child from whining asking for breast milk.

Personalized T-Shirt Printing Services in Munirka, Near Vasant Vihar New Delhi, Delhi NCR India

T-shirt printing online t-shirt printing has become a trend now a day. As it is a promotional and gifting material, People love to wear their own branded t-shirt, with a logo or photo printed t-shirt and gift to their near and dear. NGO and corporate company provide dress to their employee and volunteer for branding and product and services promotion as well as in event and casual wearing. Most of all t-shirt printing is done by sublimation, screen printing, and embroidery. You can get to print your t-shirt just in15-minute full colored as you wish. Sublimation printing is most compatibility on polyester and polyester cotton t-shirt. Cotton fabric is best for a vinyl sticker with the hot process. Where screen printing, takes a little bit longer than the sublimation process but economical for bulk quantity.

The Eighteenth Century England The Rise of Bourgeois: The Rise of English Novel

English Novel, a very famous, successful and admired genre of English literature emerged in the second half of seventeenth century. There were many causes of the rise of novel which included the invention of printing press, industrial revolution, rise of middle class of the social setup of England, growth of newspapers and magazines, rise of realism and many others which are discussed in this article.

This Is Why BlueHost Is the Best Hosting Provider in Market

BlueHost is one of the popular hosting services along small business owners and bloggers. Hence the reason, I’m recommending Bluehost for people who want to create their website using WordPress. Their last 12-month average uptime is >99.

Artificial Intelligence and Machine Learnings Are Changing Our Life

Artificial Intelligence (AI) and Machine Learning (ML) are changing our lifestyle. Software is written such that they begin to study our behaviour, our buying or selling patterns to understand us better. This is good and at the same time bad too. The same is impacting manufacturing companies, who needs to be integrate their ERP with IOT and AI tools

Roy Services Centre – Ac Repairing Service Provider in Kolkata

We are here to provide you affordable and quicker technical solutions. Now the decision to choose the best repairing option is yours.

8 Tactics You Must Follow Before Shortlisting Dental Contractor For Your Furnishing Needs!

From Children to Adults, Everyone goes to Dental Clinic and taking care of their teeth. But have you ever imagined about who cares about Dental Clinic? A Dental Contractor is taking care of it. You should choose a suitable Dental Contractor to complete your furnishing needs. Desscon Builders’ article will help you. Read Now!

Laser Teeth Whitening

Dentistry began to use laser in various treatments, one of which is tooth whitening. But is it enough to keep our teeth healthy? Starting in the sixties, medicine began using the laser for therapeutic uses. The device is used because it achieves good results and reduces pain during treatment. Since the 1980s, dentists have begun using laser services in various treatments, such as teeth whitening.

You May Also Like

bitcoin
Bitcoin (BTC) $ 19,327.14 3.13%
ethereum
Ethereum (ETH) $ 1,317.85 2.92%
tether
Tether (USDT) $ 1.00 0.12%
usd-coin
USD Coin (USDC) $ 1.00 0.12%
bnb
BNB (BNB) $ 280.71 4.25%
xrp
XRP (XRP) $ 0.436634 3.18%
binance-usd
Binance USD (BUSD) $ 0.999323 0.22%
cardano
Cardano (ADA) $ 0.432187 0.71%
solana
Solana (SOL) $ 33.28 3.35%
dogecoin
Dogecoin (DOGE) $ 0.060198 1.15%