Co-founder of Lemonade Inc. and CEO Daniel Schreiber speaking 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 insurance company Lemonade fell as much as 15% on Monday as investors prepare for the company’s in-house retail rallies to expire on Tuesday.
Lemonade has been among the best companies to play in public this year. Shares have risen more than 300% above the first offer price in July. However, about 44 million shares will be eligible for sale starting Tuesday, with traders pushing for potential volatility.
Launched in 2016, Lemonade offers insurance to tenants 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 enter more markets, such as auto insurance, which has helped push higher shares.
“We believe Lemonade is well positioned to share (quickly) a trillion-dollar insurance industry one product at a time,” JMP Securities analysts wrote in a note in December.
Lemonade was announced of CNBC’s 50 Disruptor companies in 2020, ranking at No. 17.
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