On March 1, Clover Health (NASDAQ:CLOV) posted losses and mediocre results for the quarter and year ending Dec. 31, 2020. As a result, CLOV stock is sick in bed, having fallen 8% in the past month. At $7.21 as of time of publication, the stock is down nearly 55% from $15.90 on Jan. 8 when it started trading after its SPAC (special purpose acquisition company) merger.
Don’t expect this situation to dramatically turn around anytime in the near future. That is, CLOV stock is stuck until there are at least some prospects of potential profits at this Medicare Advantage insurer.
Moreover, given that Clover has negative equity on its balance sheet, concerns are growing that it is not capitalized well enough to handle forecast losses. That could also be weighing on the stock.
Leave a Reply