Why Shares of Lemonade Are Down Today

Shares of the insurtech firm Lemonade (NYSE: LMND) traded nearly 3% down as of 11:20 a.m. ET for no obvious reason, other than the continued struggle of financial technology stocks in the broader market.

Lemonade went public last year and wowed investors with its artificial intelligence capabilities that could process applications, make decisions, and pay out insurance claims very quickly. At its high, Lemonade traded at nearly $164 a share. Since then, investors have soured on the stock, with its share price now around $51.

Earnings have not exactly impressed investors, with the company reporting a $171 million loss through the first nine months of the year, significantly higher than 2020. The net loss ratio has also moved higher and now sits at 91% through the first three quarters of the year, compared to 70% a year ago.

Source Fool.com