Why Did Lemonade Stock Fall 20% in February?
Shares of fintech stock Lemonade (NYSE: LMND) slumped 20.3% in the last month, according to data from S&P Global Market Intelligence. The company reported earnings on Feb. 23, but other market factors had larger effects on the stock's price.
Lemonade's earnings report revealed strong revenue growth, but its outlook fell short of Wall Street's expectations. The company also reported a relatively high loss ratio, which is discouraging. That's a recipe for disaster in today's market. However, the stock recovered from an initial sell-off and actually rose 8% between the earnings release and through the end of the month. Clearly, there's something else going on.
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Source Fool.com
