How and Why You Should Invest in Lemonade Stock

Lemonade (NYSE: LMND) was one of the hottest IPOs of 2020, and its run is spilling over into 2021. Shares are up some 150% since the stock's first day of trading last July, and this small insurance technology company's market cap has surged to about $10 billion.

Given that Lemonade's gross profit was only $17.3 million through the first nine months of 2020, the premium on this stock is, shall we say, quite high. Investors fall into two general camps at this juncture: Those who think the valuation is ludicrous, and those who see enough long-term potential to dismiss the current price tag as irrelevant for the time being. Here's why an investor might want to consider siding with the latter camp.

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Source Fool.com