Lemonade (NYSE: LMND) just announced an exceptional quarter that beat Wall Street's expectations on every metric, resulting in a jaw-dropping 47% single-day pop last Thursday (November 1, 2023).

To be clear, I'm a Lemonade bull and longtime shareholder who's celebrating this move -- particularly considering that shares of the insurance technology stock had been beaten down nearly 60% from its 52-week high set in July. I also suspect there's a potential short squeezeat play here, with more than a third of Lemonade's entire float being sold short as of the midpoint of last month. This strong quarter apparently left many bearish traders fleeing for the exits.

But can Lemonade stock continue rallying after this excitement subsides? If it can continue its steady march toward sustained profitability -- and noting the stock has admirably held onto last week's gains so far -- I think so.

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Source Fool.com