Market Slump Drags Down Share Prices of These 15 Companies

1. Lemonade Inc. (LMND)

Insurance giant Lemonade Inc. registered a steep decline in its share prices on Friday, shedding 10.78 percent to finish at $39.40 as investors pocketed gains a 7-percent rally on Thursday.

Year-to-date, the company’s stock price has already jumped by 133 percent, while its 30-day trading indicated a 24-percent drop from $51.81 apiece registered on November 29, 2024.

According to analysts, the company’s performance can be attributed to concerns about the company’s profitability.

In the third quarter of the year, Lemonade Inc. reported a 71-percent increase in gross profit at $38 million, and a gross profit margin rise to 27 percent. Despite a larger adjusted EBITDA loss of $49 million, Lemonade reported a positive net cash flow of $48 million.

Looking ahead, the company said it would remain focused on acquiring profitable new business and leveraging technology to drive growth and efficiency. The company said it anticipates sustaining positive net cash flow by the end of the year and adjusted EBITDA profitability by 2026.

While we acknowledge the potential of LMND as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LMND but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.