Clover Health nosedive

 Shares of health insurance company Clover Health (NASDAQ:CLOV) fell 20.3% in the afternoon session after the company reported mixed second-quarter results where rising medical costs and a wider-than-expected loss overshadowed strong revenue growth. The technology-focused insurer announced revenue of $477.6 million, which climbed past analyst forecasts, fueled by a 32% jump in Medicare Advantage membership. However, the company posted a net loss of $0.02 per share, a reversal from a profit in the same quarter last year and a miss on analyst expectations. Investors focused on the increase in the Insurance Benefits Expense Ratio (BER), a key metric showing the portion of premiums spent on medical care, which rose to 88.4%. Compounding the issue, Clover Health also raised its forecast for the full-year BER, signaling that these higher costs would likely persist. In response to the report, analysts at UBS cut their price target on the stock. The core of the issue stems from an “unprecedented medical cost trend environment,” particularly within the Medicare Advantage market, which are privately run versions of the federal health insurance program.

https://finviz.com/news/130339/why-clover-health-clov-stock-is-nosediving