3 Reasons to Buy Lemonade Stock Right Now
Lemonade (NYSE: LMND) just reported another round of results that look great on the surface. But some of its updates didn't please investors, and the stock tanked, after rising in anticipation of strong numbers. Let's see what's going on and why you might want to buy this artificial intelligence (AI)-based insurance stock.
Lemonade reported strong growth in the 2024 second quarter. Revenue increased 17% year over year, while in-force premium (IFP) and gross earned premium (GEP) were both up 22%. That wasn't a well-received update, since that's a fairly low increase for a growth stock.
I think many of the Lemonade naysayers are viewing Lemonade as a tech stock rather than as an insurance stock. That's understandable; Lemonade doesn't easily fit into either box. But ultimately, Lemonade sells insurance, even though it does that through the use of AI and technology. So it has to be viewed in that context.
Source Fool.com
