Is Clover Health Stock a Buy?
It might sound strange to hear that traders on Reddit absolutely love the stock of an insurance provider that's focused on administering a formerly obscure type of Medicare plan. And it is, but that hasn't stopped Clover Health Investments (NASDAQ: CLOV) from becoming a plucky meme stock.
The company's approach to Medicare Advantage plans is to be cheaper for consumers and more profitable for doctors. Medicare Advantage plans, in case you're not familiar, are expanded Medicare plans that offer a wider network and greater coverage of healthcare needs for patients. So far, Clover Health itself hasn't been profitable with this arrangement, but it's growing quarterly revenue at a steady pace of 18% year over year nonetheless.
Will the company be able to grow its way to dominance, or is it on track to remain unprofitable forever?
Source Fool.com
