Lemonade's CEO Said Its Strategy Isn't Working. Here's Why That's a Great Thing
After hitting a high of $164 per share in 2021, Lemonade (NYSE: LMND) stock has been sinking and sinking, falling to less than $11 last week. That might have been rock bottom, because the stock soared this week after a massive earnings beat and excellent first-quarter operating results.
Management has changed its strategy over the past few months, and part of that pivot contributed to the outstanding report. But part of the strategy didn't work out quite as planned. Oddly enough, that also turned out to be fantastic news. Here's why.
Investors lost patience with Lemonade over the past few months as losses mounted, and it was unclear whether its business was viable. However, things mostly went according to management's original plan, which called for losses as the company rolled out a complete array of insurance products. It's a typical growth plan for new tech companies, and it might have been embraced in a continued bull market. But overall poor market conditions have sent investors fleeing toward safer stocks and abandoning riskier ones.
Source Fool.com
