This Former AI Darling's Market Cap Is Now Below $1 Billion. Time to Buy or Say Goodbye to Its Stock?
Lemonade (NYSE: LMND) impressed investors after its July 2020 IPO. Its ability to apply AI to the sales and underwriting process showed the potential to revolutionize the insurance industry, and the stock surged as high as $188 per share before losing most of its value in the bear market.
Unfortunately, its potential has failed to translate into profitability, and a disappointing second-quarter report wiped out the stock's 2023 gains. With its market cap below $1 billion, many investors now wonder whether now is the time to double down on the AI stock or cut bait.
Lemonade's revenue for the first two quarters of 2023 was $200 million. This is a yearly increase of 112% versus the same time frame in 2022.
Source Fool.com
