Why Social Capital Hedosophia Holdings III Tanked on Tuesday
Social Capital Hedosophia Holdings III (NYSE: IPOC) was a stock market stinker on Tuesday, cratering by nearly 14%. This followed news that the special purpose acquisition company (SPAC) was effectively buying health insurance provider Clover Health in a deal valued at $3.7 billion. This parking of Clover Health into a SPAC will turn it into a publicly traded company.
Clover Health sells Medicare Advantage insurance plans in seven U.S. states. All told, its policy holders number over 57,000. These operations are harnessed to sophisticated data-dissemination capabilities, which Social Capital's founder Chamath Palihapitiya claimed in a tweet result in "lower costs, less waste and, most importantly, better outcomes."
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Source Fool.com
