While subreddit r/WallStreetBets’ huge wagers against short sellers and the resulting short squeezes have helped several stocks skyrocket in price, many of those stocks have witnessed subsequent price declines on their fundamental weakness. Clover Health Investments, Clover Inc. (NASDAQ) are two examples of meme stocks. Given their poor financial situation, they look very risky. They should be avoided. Continue reading. The healthcare industry tried to avoid the COVID-19 epidemic by creating vaccines, addressing market demand for protection gear, and providing secure healthcare facilities. These actions fueled the rise of healthcare businesses. This industry is poised to expand with the technological developments and growing demand for high-quality healthcare facilities and products. Investors’ interest in this industry is evident in the Vanguard Health Care Index Fund ETF’s (VHT) 28.3% returns over the past year.

Industry tailwinds have not benefited all healthcare stocks. Following subreddit r/WallStreetBets’ (WSB) enormous success earlier this year in squeezing short-sellers out of their positions in GameStop (NYSE:), the forum targeted several other fundamentally poor stocks with heavy short interest and benefitted by inducing short squeezes in them also.

Clover Health Investments Corp.(CLOV) is a favorite of WSB in the healthcare industry. Ocugen Inc. We believe they are a weak stock and should be avoided. In our POWR Ratings, they are given an F rating (strong sell).

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