#4 - Clover Health (NASDAQ:CLOV)
Clover Health (NASDAQ:CLOV) is a Medicare Advantage insurance company that went public in 2020 via a special purpose acquisition company (SPAC). When it comes to SPACs one rule of thumb is to bet on the jockey (i.e. the SPAC sponsor). In the case of Clover Health, the jockey was Chamath Palihapitiya who has an impressive record of bringing companies public.
If you bought into CLOV stock before it went public, you have an impressive gain of over 50%. But the company has struggled in 2021 largely due to a report from Hindenburg Research that questions the company’s business model.
As a more fundamental issue, investors are waiting to see if the company can continue on its impressive growth trajectory. Clover is forecasting its addressable market to reach $590 billion in annual spending by 2025. That’s more than double the current level. Also, because the business is trying to scale up quickly, it will take some time for the company to be profitable.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat.
Read More - Current Price
- $3.23
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 1 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $5.00 (54.8% Upside)
