Is Lemonade Stock a Buy?
Insurance technology company Lemonade (NYSE: LMND) dazzled investors with its first-quarter earnings report in May, demonstrating the improvements in profitability that had eluded it for several years and that investors were waiting for.
That was in addition to incredible top-line growth and progress in most areas. However, net profitability seems like it's still far off, and that's still throwing off Wall Street. This looks like a classic case of risk versus reward. Should you buy Lemonade stock?
Lemonade sells digital insurance policies, but it's more revolutionary than it sounds. It's a certified B corp, meaning it has a social mission. That's because it allows policyholders to donate any remaining funds after claims are paid to a charity of their choice at the end of a policy year. That's more than a quirk; insurance is, by nature, an industry prone to giving customers the least because parting with funds lowers a company's bottom line and erodes important ratios.
Source Fool.com
