Daniel Schreiber, co-founder and CEO of Lemonade Inc., speaks onstage 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 insurance company Lemonade fell a whopping 15% on Monday as investors prepare for the end of the company’s sales restrictions on Tuesday.
Lemonade is one of the top-performing companies to go public this year. Shares are up more than 300% above the original issue price in July. However, as of Tuesday, around 44 million shares will be eligible for sale and traders are bracing for potential volatility.
Launched in 2016, Lemonade provides insurance to renters and homeowners. It uses artificial intelligence and chatbots to make it easier and faster to find and buy insurance. Investors believe the company could soon venture into more markets, such as auto insurance, which contributed to higher stocks.
“We believe Lemonade is well positioned to (quickly) enter the multi-billion dollar insurance industry, product by product,” JMP Securities analysts wrote in a December note.
Lemonade was named one of CNBC’s Disruptor 50 Companies in 2020 and is ranked # 17.
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