Starting from July 13 the Lemonade stock has been decreasing at a very fast speed. Though the stock has jumped on July 15 to $90.25 from $87.00, it crashed to $81.65 yesterday on July 19. Lemonade is a mobile-first insurance company that brings the disruptive technology of the past to the present. Instead of traditional agents and actuaries, it uses chatbots and artificial intelligence to provide better efficiency and lower costs.
The company’s gross loss ratio more than doubled in the first quarter of 2021. It was mainly due to the winter storm Uri in Texas. Lemonade’s next product is car insurance. This industry has a huge opportunity for growth.
Even though Lemonade is a disruptive growth stock, it doesn’t have the same potential volatility as a market crash. Instead, it could be a buying opportunity once it stabilizes. Unfortunately, there’s no guarantee that the next big drop will happen, so prepare yourself. The market capitalization of the company equals to %5.173 billion.
Finance and Entertainment Reporter
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