Why These 15 AI Stocks Are Plunging So Far in 2025

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12. Lemonade Inc (NYSE:LMND)

Number of Hedge Fund Holders In Q4 2024: 25

Lemonade Inc (NYSE:LMND) is a digital insurance company that also uses artificial intelligence and behavioral economics in its operations.

The stock is down significantly so far in 2025 despite some positive events. For example, Lemonade’s revenue increased 29% year-over-year to $149 million and exceeded analyst expectations of $145 million.

However, California wildfires have had a very negative impact here. Lemonade faced significant claims from the California wildfires in late 2024. It is going to cost the company an estimated $20 million in EBITDA.

The guidance was also missed. Lemonade’s guidance for Q1 2025 revenue ($143–$145 million) and full-year 2025 revenue ($655–$657 million) fell short of analyst estimates ($151.4 million for Q1 and $667.5 million for the year).

The consensus price target of $32.67 implies 3.92% upside.

LMND is down 15.13% year-to-date.

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