Since my original Lemonade writeup two years ago, its stock is up 6x. I think its next 6x is more likely and less risky than the last 6x. When Lemonade’s stock was in the teens throughout 2023 and most of 2024, there were legitimate questions about the company’s long-term potential. To me, the biggest question was whether Lemonade could extend its success in pet and renters insurance to the more complex and competitive markets of home and auto. Today, I don’t have any major concerns about Lemonade, and I am far more confident in their future than I was two years ago.

Lemonade is going through a major multi-year transition. They are evolving from a niche insurer to—what I believe—a serious player in the consumer insurance industry. In my December 2024 writeup I called out 2025 as being critical for Lemonade to become a serious contender to the likes of Allstate, GEICO, and Progressive. Below is exactly what I said.

Continue reading “Lemonade’s Path to 6x Again: Why Its Future is Clearer Than Ever” →

Lemonade is a consumer insurance company that currently offers renter, condo, home, auto, pet, and life insurance. While most insurance companies that consumers are familiar with—Progressive, GEICO, State Farm, Nationwide—were founded 80+ years ago, Lemonade was started in 2015 by the current CEO, Daniel Schreiber, and COO, Shai Wininger.

Not surprisingly given that timeline, Lemonade is a much more tech-oriented company than their larger competitors. Lemonade does not sell its insurance via agents and brokers, instead focusing on online ads, fun social media presences, and word-of-mouth that comes from their high net promoter scores. Lemonade insurance can be purchased in just a couple of minutes from their bot, AI Maya, and one-third of claims are handled entirely by AI Jim—with zero human interaction. This tech advantage is obvious by simply using the product. I have now switched all of my insurance from Progressive and GEICO to Lemonade due to their tech and app being so much better.

Continue reading “Lemonade: Short-Term Headwinds Will Soon be Tailwinds” →