Will Lemonade Stock Hit $50 in 2022?

Insurance technology company Lemonade (NYSE: LMND) has left a sour taste in the mouths of investors, with its stock falling 80% over the past year to around $32 at recent prices. The stock's nosebleed valuation at its high, plus a marketwide sell-off of growth stocks, has contributed to its fall.

Investors probably shouldn't expect the stock to revisit its highs around $183 anytime soon, but could it rebound to $50 sometime this year? Nobody can know for sure; of course, Mr. Market tends to be unpredictable. However, there are several reasons to be optimistic that Lemonade will one day be sweet for investors again.

Insurance companies are heavy advertisers; you probably see at least one insurance commercial every time your favorite show goes to a break. They rely on beating you over the head with ads to grab mindshare because the overall consumer experience typically doesn't win customers over. The net promoter score (NPS) indicates how likely a consumer is to recommend a brand to a friend or family; the average NPS for insurance companies ranges between 35 and 41 out of 100.

Source Fool.com