Lemonade: Ready For The Rebound

May 16, 2022 12:30 PM ETLemonade, Inc. (LMND) StockLMND35 Comments
Gary Alexander
31.2K Followers

Summary

  • After crashing more than 50% year to date, Lemonade is poised to benefit from a stock market rally.
  • The company is now offering fuller insurance bundles in some select markets, and the initial cross-sell data is encouraging.
  • The company is also expecting to see loss ratios improve as the price increases it filed for get approved.
  • Lemonade has >$1 billion of cash on its balance sheet, enough to withstand years of losses as it continues to scale.

Umbrella on abstract technological background

blackdovfx/E+ via Getty Images

Tech stocks that went public during the pandemic have all shown a fairly rapid "boom and bust" cycle, and insurtech company Lemonade (NYSE:LMND) is certainly no exception. Debuting in July 2020 at $29 per share, Lemonade stock skyrocketed

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This article was written by

31.2K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of LMND either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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