Why Lemonade Stock Dropped 14% in July, and Why It's Already Rebounding

Shares of insurance technology company Lemonade (NYSE: LMND) dropped 14% in July, according to data provided by S&P Global Market Intelligence. There wasn't any significant news directly related to the company, but the descent started after home sales data were released on July 23, and home insurance is a big part of Lemonade's business today. However, it dispelled those worries with a fantastic second-quarter report.Lemonade is a digital insurance company that sells insurance online, mostly through chatbots. It uses artificial intelligence (AI) and machine learning throughout its business, and its algorithms determine everything from policy pricing to regional marketing spend.It's only a decade old, but it's already made a strong mark on the industry, expanding its platform to cover most kinds of insurance and reaching most of the U.S. population. It's growing rapidly as customers enjoy the concept of being able to file a claim online and have it approved within minutes instead of needing to wait on hold for an insurance agent to answer their calls.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool