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Home / Business / Lemonade stocks fall before the lock-up period expires

Lemonade stocks fall before the lock-up period expires



Daniel Schreiber, co-founder and CEO of Lemonade Inc., gave a speech on the first day of TechCrunch Disrupt SF 2018 at the Moscone Center in San Francisco, California on September 5, 2018.

Kimberly White | Getty Images

On Monday, the online insurance company Lemonade’s share price plummeted 15%, as investors were preparing to end the company’s internal sales restrictions on Tuesday.

Lemonade has been one of the best performing companies going public this year. The stock price is more than 300% higher than the initial issue price in July. However, starting from Tuesday, approximately 44 million shares will be eligible for sale, and traders are preparing for potential volatility.

Lemonade was launched in 201

6 to provide insurance for tenants and homeowners. It uses artificial intelligence and chatbots to make the process of finding and buying insurance easier and faster. Investors believe that the company may soon be involved in more markets, such as auto insurance, which will help boost the stock price.

JMP Securities analysts wrote in a December report: “We believe that Lemonade can (swiftly) take advantage of a product in the trillion-dollar insurance industry at a time.”

Lemonade was selected as CNBC’s Disruptor 50 company in 2020, ranking 17th.

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