This Fintech Is Down 79% Since Its IPO: Is It a Buy?
Root (NASDAQ: ROOT) is a young company looking to revolutionize auto insurance by eliminating the use of credit scores in pricing insurance policies through the use of behavioral-based data.
However, the insurer has had a tough go of it since going public in October 2020, with its stock down 79%. The most recent quarter didn't do the company any favors, when its revenue took a hit and its net loss for the quarter was four times larger than the same quarter last year.
The young insurer is experiencing growing pains as it expands its services across the U.S. While the company has upside potential, there are also obstacles in its path that it must overcome before I would consider it a long-term investment
Source Fool.com
