Why Lemonade Stock Dropped 13% Last Month
Share of insurance-tech company Lemonade (NYSE: LMND) fell 17% in August, according to data from S&P Global Market Intelligence. The stock still trades at a sky-high valuation, and second-quarter earnings weren't spectacular enough to soothe investors.
Lemonade tumbled from a hot IPO stock last year to an underperforming holding in 2021. Revenue hasn't demonstrated strong growth, although changing deals with third-party reinsurers make that metric difficult to quantify. The company saw its loss ratio rise after it was hit by its exposure to the Texas deep freeze in the first quarter, further disappointing investors. And it's not showing any signs of nearing profitability. In all, Lemonade hasn't been able to show that it's a growth stock that's going places -- at least not yet.
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Source Fool.com
