Why Lemonade Stock Plummeted 24% in April
Shares of insurance technology company Lemonade (NYSE: LMND) lost 24% of their value in April according to data provided by S&P Global Market Intelligence. The company didn't report any news, but the banking crisis led to further investor pessimism overall and specifically in the fintech sector.
Lemonade delighted investors and customers alike when it rolled out its artificial-intelligence-based insurance products. It relies on machine learning to power its policy underwriting, and all of its operations are designed with customer satisfaction in mind. It's almost entirely digital, and it allows policy holders to donate remaining policy funds to charity, earning it B Corp status.
Lemonade started with cheap renter's insurance, and it has now launched homeowner's, pet, life, and auto insurance products. Its strategy is to acquire younger customers when they're looking for smaller policies and grow with them as they purchase homes and cars and need more coverage.
Source Fool.com
