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Clover Health Investments Skyrockets in Meme Stock Surge

Medicare insurance start-up Clover Health Investments took off as the meme stock crowd rallied around the company.

Clover Health Investments  (CLOV) - Get Report surged Tuesday after meme stock investors rallied around the healthcare plan company and drove the stock into the stratosphere.

Shares of the Franklin, Tenn. company were soaring nearly 55% to $18.41 at last check.

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Clover Health is a Medicare insurance start-up that went public via venture capitalist Chamath Palihapitiya’s SPAC.

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"Today's upward movement is just the tip," one poster wrote on Reddit on Tuesday. "Like an iceberg, 90% of this stock's potential is unseen."

"Bought me some," another said. "Let’s get it up there! Hearing great things."

"Everyone hold if you can," a third poster said. "This is just literally Day 1 of the squeeze. Just getting started. $CLOV to $250."

Clover Health joined Wendy's  (WEN) - Get Report, which surged to an all-time high Tuesday, as the restaurant chain also appeared to join the meme stock crowd.

In February, short-seller Hindenburg Research published a scathing report about Clover Health, accusing Palihapitiya of misleading investors as it prepared to go public last month.

Hindenburg said the company is under "active investigation" by the U.S. Department of Justice linked to "at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals" based on a civil investigative demand it claims to have seen.

In response, the company said that it had received a notice of investigation from the Securities and Exchange Commission.

Palihapitiya recently filed for four new SPAC S-1s. The new SPACs were underwritten by Morgan Stanley, while Palihapitiya's initial series of IPOs was handled by Credit Suisse.