MILE - Why Lemonade Plunged 20% in November
Shares of popular insurance technology company Lemonade (NYSE: LMND) fell 20% in November, according to data provided by S&P Global Market Intelligence . Lemonade launched its long-anticipated auto insurance product, Lemonade Car, and announced its acquisition of auto insurance company Metromile (NASDAQ: MILE) . The market wasn't pleased about it.
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Lemonade has been releasing new products in its quest to become a one-stop insurance shop for its young customers and grow with them as they go through lifecycle events. When it went public a year and a half ago, it only sold renters and homeowners insurance (as well as certain liability products in European markets). Since then, it's launched pet insurance, term life policies, and now auto. Since it will take time to roll out its auto products across states, the company acquired Metromile, which has a similar digital focus to Lemonade. It's already functional in 49 states, paving the way for Lemonade Car to roll out quickly.
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Why Lemonade Plunged 20% in November