Clover Health Investments, Corp. (CLOV): A Bull Case Theory

 We came across a bullish thesis on Clover Health Investments, Corp. on topsecretstocks’s Substack. In this article, we will summarize the bulls’ thesis on CLOV. Clover Health Investments, Corp.'s share was trading at $3.1200 as of September 16th. CLOV’s forward P/E was 46.95 according to Yahoo Finance.

Clover Health (CLOV) has been one of the most polarizing names in the Medicare Advantage space, moving from early euphoria during its 2021 SPAC IPO to deep skepticism as regulatory challenges, high costs, and slower growth weighed on shares. Once trading above $20, the stock collapsed to below $1 before stabilizing and currently trades around $3. Despite this prolonged decline, insiders remain confident, with founder Vivek Garipalli still the largest shareholder and making a recent $1 million insider purchase.

Clover distinguishes itself through its PPO-first model, giving members broad physician access, and its AI-driven Clover Assistant platform, which provides real-time clinical insights to doctors at the point of care. Unlike incumbents who use AI mainly for cost control, Clover has embedded technology into its core product, positioning itself as a tech-first insurer. CEO Andrew Toy, a technologist with experience at Google and Plumtree Software, continues to scale the business by combining insurance operations with a data-driven software platform.

The Medicare Advantage market represents a massive $500+ billion opportunity, expected to grow to nearly $600 billion by 2028, and Clover has expanded membership 32% year-over-year. In Q2 2025, revenue rose 34%, adjusted EBITDA and net income reached $17 million each, and SG&A leverage improved, though margins were pressured by higher utilization. Full-year guidance calls for $50–70 million in adjusted EBITDA, marking an inflection point toward profitability.

The company sees accelerated growth in 2026 supported by higher quality ratings, cost efficiencies, and broader Clover Assistant adoption. While Clover faces formidable competition from UnitedHealth, Humana, and Elevance, its wide PPO network combined with proprietary AI creates a unique moat. For investors, Clover remains a high-risk/high-reward InsurTech story: dismissed by many after the SPAC collapse yet now showing credible signs of a turnaround with potential for outsized upside if execution continues.

Previously we covered a bullish thesis on UnitedHealth Group Incorporated (UNH) by FluentInQuality in May 2025, which highlighted its unmatched scale in Medicare Advantage, Optum integration, and resilient financials. The company’s stock price has appreciated approximately by 15.7% since our coverage. This is because its integrated model and leadership stability supported growth. The thesis still stands as healthcare tailwinds persist. topsecretstocks shares a similar view but emphasizes Clover Health’s PPO-first model and AI-driven platform.

Clover Health Investments, Corp. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held CLOV at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the potential of CLOV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW

Disclosure: None.