What happened Shares of Clover Health Investments (NASDAQ: CLOV) fell 32.6% in February, according to data provided by S&P Global Market Intelligence, after the company was targeted by short-seller Hindenburg Research. Hindenburg called Clover Health "a broken company" and provided a good enough argument to cause some investors to walk away from the stock. So what Clover became public through one of the special purpose acquisition companies (SPACs) backed by billionaire investor Chamath Palihapitiya. Clover is a medical insurance provider focused on Medicare Advantage plans that uses internally developed tech to try to improve patient outcomes, and their payments. Image source: Getty Images. Palihapitiya called Clover "the greatest growth opportunity" that he's seen, but Hindenburg has its doubts. The firm in its report alleged Clover is under investigation by the U.S. Department of Justice, its sales are driven by misleading marketing practices, and that its signature tech product "deceives the healthcare system" and "poses a significant regulatory risk." Clover denied the allegations, but did confirm that there are some regulatory inquiries into its business. Now what It's hard to know what to make of any short report. Hindenburg has a decent track record, and there is a lot of meat contained in the report, but then again investigations are not uncommon and often turn out to be nothing. Clover didn't help its cause in early March when it announced fourth-quarter results and provided 2021 guidance below expectations. Clover is a relatively tiny Medicare insurer, with ample opportunities to grow its market share. But it is also operating in a highly regulated space where margins are limited, and it's relying on still-unproven tech to generate outsized returns. Investors need to watch this company closely, no matter what they think of the Hindenburg report. 10 stocks we like better than Clover Health InvestmentsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Clover Health Investments wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of Clover Health Investments. The Motley Fool has a disclosure policy.Source