Why Lemonade's $49 Million Net Loss in Q1 2021 Isn't That Big a Deal
Tech stocks have been getting battered this spring, and fantastic first-quarter 2021 earnings results have thus far offered little reprieve from the selloff. High-growth stocks are cooling off after many of them ran up double- and triple-digit percentages since the start of the pandemic, and tech-enhanced insurance outfit Lemonade (NYSE: LMND) is among them. Share prices are down nearly 70% from their all-time highs as of this writing.
The real attention-grabbing line item in Q1 for Lemonade was its $49 million net loss (or adjusted EBITDA loss of $41.3 million), chalked up mostly to the winter storm that ravaged Texas earlier this year. On the surface, these are steep losses that exceeded what many investors were expecting. But some perspective is needed here.
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Source Fool.com
