Is Lemonade Really the Disruptor Investors Think It Is?
Lemonade (NYSE: LMND) was one of the hottest IPOs (initial public offerings) of 2020, gaining 145% from its day one price through the end of the year. And the stock has gotten off to a hot start in 2021, gaining 16% through Tuesday's close.
Investors are clearly taken with the insurance technology company, which has yet to turn a profit. But it's not the only insurtech in town. Root sells digital auto insurance, and Oscar, which announced plans in December to go public, markets digitally powered health insurance. Established insurance companies such as Geico and Allstate have also entered the digital age and offer many services online. How disruptive is Lemonade, really, and does it deserve such high confidence?
Source Fool.com
