Lemonade Inc. co-founder and CEO Daniel Schreiber speaks on stage during Day 1 of TechCrunch Disrupt SF 2018 at the Moscone Center on September 5, 2018 in San Francisco, California.
Kimberly White | Getty Images
Shares of online insurer Lemonade plunged by up to 15% on Monday, as investors prepared to end the company’s internal sales restrictions.
Lemonade is among the best performing companies that went public this year. The shares rose more than 300% above the initial offering price in July. However, about 44 million shares will be eligible for sale as of Tuesday, and traders are gearing up for potential volatility.
Lemonade, launched in 2016, offers insurance for renters and homeowners. It uses artificial intelligence and chatbots to make finding and buying insurance easier and faster. Investors believe the company will soon be able to venture into more markets, such as auto insurance, which helped raise the stock.
“We believe that Lemonade is well positioned to gain (quickly) a trillion dollar insurance industry share, one product at a time,” wrote analysts at JMP Securities in a December note.
Lemonade was named one of CNBC’s 50 Disruptor companies in 2020, ranking 17th.
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