Why is Clover Health (CLOV) going up today?

Shares of Clover Health (CLOV) is skyrocketing higher today. It seems that CLOV stock has gained meme status among reddit investors such as Wall Street Bets and other communities.

The stock is currently up over 100% in pre-market trading hours with investors hoping the once a SPAC stock would gain AMC and GME type momentum.

CLOV stock is currently being bought and sold above $15 a share, while it was valued at $7.64 at the end of last month. Over 125 million shares were traded on Monday, nearly an eightfold increase from Friday.

Clover Health went public Jan. 8 by merging with a special-purpose acquisition company, or SPAC. Founded in 2013, it provides private health insurance and Medicare plans.

Some Reddit users are speculating that Clover Health could be a candidate for a short squeeze, which is characterized by a high level of investors betting on the stock to fall. If the share price rises significantly instead, short investors may be forced to buy the stock to cover their positions, which could accelerate the stock upward.

Others on Reddit are hoping that Clover Health could be added to the Russell 2000, a widely followed small-cap index, though it isn’t clear if this would be enough to support the rise in its share price.