Lemonade Inc. co-founder and CEO speaking Daniel Schreiber is on stage during the first day of TechCrunch Disrupt SF 2018 at the Moscone Center on September 5, 2018 in San Francisco, California.
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Shares in internet insurer Lemonade tumbled as much as 15% on Monday as investors brace for the company’s internal selling restrictions until expiring Tuesday.
Lemonade was among the top performers to go public this year. Shares jumped more than 300% above the initial public offering price in July. However, approximately 44 million shares will be eligible to sell as of Tuesday, and traders are bracing for potential volatility.
Lemonade, launched in 2016, offers insurance for renters and homeowners. It uses artificial intelligence and chatbots to make it easier to find and buy insurance faster. Investors believe the company may soon venture into more markets, such as auto insurance, which helped lift shares.
“We believe Lemonade is well positioned to capture (quickly) a share of the trillion dollar insurance industry, one product at a time,” GMP Securities analysts wrote in a note for December.
Lemonade was named to CNBC’s Disruptor 50 Companies in 2020, ranking 17th.