Lemonade the AI tech based insurance company reporting after the bell yesterday and that lemon got squeezed. And I don't mean a short squeeze!
With most new tech based companies it is all about projecting revenue growth. Most of these companies lose money for several years all on the premise of every dollar is being reinvested to grow (including growing revenues).
The insurance company generated revenue of $20.5 million in its fourth quarter, down from $23.5 million last year.
However, it was above analysts projected revenue of $19.2 million.
Nonetheless, investors don't like to see a drop in revenue on a growth stock, thus we get the chart shown above.
Stock price gapped down and sold off throughout the session, shedding 16% on the day.
2021 has been a rough start for the stock has it has sold off after making an all time high above $180 to kick off the first week of the year
