2024-03-16 05:03:00 ET
Lemonade (NYSE: LMND) has been a popular stock for growth investors ever since it went public in 2020. The insurance start-up has touted its asset-light artificial intelligence (AI) approach to insurance, hoping to disrupt the legacy players with modern digital tools and lower rates for things like renters and car insurance. It now has 2 million active customers in less than nine years after its founding in 2015, making it one of the fastest-growing companies of the last decade.
But its stock price hasn't reflected this growth. After reaching a market cap of $10 billion in early 2021, Lemonade has fallen hard and is now below $20 a share and off 90% from all-time highs.
It continues to grow quickly but can't seem to generate a profit. Should investors finally take the leap and buy the stock at these depressed prices? Or is this company headed for the dustbin of history? Let's take a closer look.
For further details see:
Should You Buy Lemonade Stock Below $20 a Share?