In addition to the recent investments in MercadoLibre, Inc., investors are also considering the potential of Lemonade stock (NYSE: LMND) despite its significant decline. The stock is currently down 91% from its all-time high in January 2021 [3488246f].
Lemonade, a company that offers five core insurance products, has shown strong growth trends. Its revenue and customer count have increased by 67% and 12% respectively compared to 2022. Despite these positive indicators, Lemonade has yet to produce consistent profits and reported a net loss of $42 million in Q4 2023 [3488246f].
The stock currently trades at a price-to-sales ratio of 2.6, which is nearly 90% lower than its historical average. This suggests that the stock may be undervalued [3488246f]. However, Lemonade faces competition from larger insurance companies that have heavily invested in technological capabilities, which adds to the risk associated with the stock [3488246f].
While Lemonade stock remains risky, investors with a higher risk tolerance may consider initiating a small position while the stock is beaten down [3488246f].