Why Lemonade Stock Lost 31% in December
Shares of Lemonade (NYSE: LMND) stock lost 31% of their value in December, according to data provided by S&P Global Market Intelligence. There wasn't any significant news in December, but Lemonade was on the receiving end of the general market slump, which has been particularly affecting unprofitable tech stocks.
Lemonade continues to post impressive growth and gain droves of customers. In the 2022 third quarter, customer count increased 30% over last year to 1.8 million, and gross earned premium, or total policy dollars, increased 71%. Premium per customer increased 35% to $343. That rate was accelerated, and almost doubled, from the second quarter, when it was 18%. It demonstrates that Lemonade's model of growing its business through upsells and cross-sells is working.
That's significant for investors, because Lemonade has claimed from the beginning that it would evolve from a humble seller of renters insurance into a real challenger to traditional insurance. The evolution, though, can't happen in an instant. It involves serious cash outlays and patience.
Source Fool.com
