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Clover Health Shares Reverse Reddit Surge As Meme Stock Rally Stalls

"If you are short Clover you are most likely starting a new profession today," TheStreet's founder, Jim Cramer, Tweeted Wednesday.

Clover Health Investments Corp.  (CLOV) - Get Free Report shares reversed their Reddit-fueled surge Wednesday, after opening at a fresh all-time high, as the Chamath Palihapitiya-backed health insurance seller added its name to the list of meteoric meme stock gainers. 

Clover Health saw more than 720 million shares change hands yesterday as the stock surged 85.8% on the Nasdaq amid a renewed push from retail investors, many of which exchange views on chatrooms found in Reddit and social media platforms such as Twitter.

Data from the website, which tracks real-time mentions on stocks within Reddit's r/wallstreetbets chatroom, indicated that Clover is now the most-discussed stock among users, with activity up 15% from yesterday to around 5,140 individual posts.

The stock's recent gains, however, followed a mixed first quarter earnings report for the group, which showed revenues rising 21% to $200.3 million but its medical loss ratio (MLR) -- the percentage of premiums spend on claims and expenses -- jumped to 107.6%, eroding near-term profitability. 

Clover sees 2021 revenues in the region of $810 million to $830 million, a modestly lower tally than its prior forecasts, with a full-year MLR of between 94% and 97%. It also expects an adjusted loss of between $240 million and $190 million.

Clover Health shares were marked 7% lower in early trading Wednesday to change hands at $20.70 each, trimming its one-month gain to around extend its one-month gain to around 101% and giving it a market value of more than $8.5 billion.

Clover Health listed on the Nasdaq earlier this year following a $3.7 billion merger with Palihapitiya's Social Capital Hedosophia Holdings Corp. III, a so-called special purpose acquisition company, that left Palihapitiya with a 27% stake. The group sells Medicare Advantage plans to its 57,000 members.