Clover Health’s Massive Spike in Volume and Tilray Weed Legalizations on The Rise
Clover Health Investments, a Medicare Advantage insurer with a market cap of $3.584 billion, saw a parabolic rise in volume on Friday.
On Thursday, Clover Health saw a meager 5,824,424 shares traded, matching its previous days. However, on Friday there was a massive rise in volume with 249,097,850 shares being traded intraday. This was the highest in the company’s history, as many entered long positions in hopes of a short squeeze.
Clover Health closed at $8.82 on Friday, up 20% on the day. However, it is still far from its 52-week high of $17.45.
Tilray is one of the largest cannabis companies and has fallen approximately 32.15% in the last month. It closed with a 4.23% loss for the week.
Wall Street will continue to watch the increasing number of states legalizing weed in the United States. This year alone, New Mexico, Virginia, New Jersey, and New York have legalized the recreational use of marijuana, with more states to come.
As U.S. citizens’ support for legalization increases, it is likely that the government will continue to push for it. This can play a major role in Tilray shares, as increased access will likely result in increased revenue.
Tilray shares closed at $17.20, up 1.53% on the day.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.