Why Lemonade and Upstart Holdings Stocks Sank Today
A controversial research report about a prominent fintech was the torpedo that sank a clutch of the sector's stocks on Thursday. Two notable victims of this were insurance specialist Lemonade (NYSE: LMND) and next-generation lender Upstart Holdings (NASDAQ: UPST). The former's stock closed the day nearly 2% lower, while the latter suffered a nearly 4% decline. By contrast, the S&P 500 index inched up by 0.3%.
The peer blasted with that report was Block (NYSE: SQ), which has drifted into the sights of a short-seller called Hindenburg Research.
Notorious in certain circles, Hindenburg is known particularly for its scathing take-downs of stocks it feels are significantly overvalued.
Source Fool.com
