Where Will Lemonade Stock Be in 1 Year?
Lemonade (NYSE: LMND), which went public in July, is bringing modern technology to the venerable insurance industry. Since its IPO, the stock is up by more than 100%, significantly outperforming the broader market. Needless to say, its shareholders have every reason to be quite pleased at this point. But despite these gains, Lemonade still looks like a great long-term investment. Here's why.
Traditional insurers use agents to sell insurance and pay claims. And after they collect premiums, pay claims, and cover expenses, those companies pocket whatever is left over as profit.
Image source: Lemonade
Source Fool.com