Clover Health and Sorrento Therapeutics: 2 meme stocks to avoid in the healthcare sector

Meme stocks typically generate investor interest through social media forums, and most of the time their rallies are not backed by strong financials or market technicalities. Given the speculative nature of retail investors and these stocks’ supernormal price gains, they generally retreat following an extended rally. Meme stocks in the healthcare sector are currently more susceptible to a market crash because investors are focusing on outdoor and cyclical stocks amid the fast-paced economic recovery.