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Investors are attentive to the next big developments in the market. But as for Lemonade (NYSE: LMND), today’s percentage holders will have to prepare for a sour joy until a larger combination is served on Lemonade’s percentage value chart. Let me explain.
Led by Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN), the market has reached several all-time highs and, impressively, in the context of the Covid-19 pandemic. To say it was a race is to fall short.
So what or who is the lemonade?
Lemonade is an IARD insurer.
Compared to today’s fast-acting electric vehicle theme led by Tesla (NASDAQ: TSLA), biotechnology in the high-flying coronavirus or SPAC vaccine race like DraftKings (NASDAQ: DKNG) or Virgin Galactic (NYSE: SPCE), Lemonade sounds like a boring investment from a bygone era. It’s not as boring as all that, though. After all, Lemonade uses AI or synthetic intelligence for a fintech angle in a quiet industry.
Lemonade’s purpose is to use its artificial intelligence-based platform to disrupt the Progressive Festival (NYSE: PGR), Allstate (NYSE: ALL) or Berkshire Hathaway (NYSE: BRK). B) Geico. You know, corporations are busy doing big commercials.
But as tempting as Lemonade may seem, today’s companies have demanding situations in addition to the memorable logo symbol of their competitors. That is, lemonade broth is expensive. Stocks face losses for the foreseeable future. Lemonade also has a very uncompetitive 33x price/sales ratio compared to old-school earnings, profit flows and low-digit multiples, and is based on the price of its much larger rivals.
To be fair, lemonade inventory is a history of fintech expansion. Sales rose by almost 140% in the last quarter compared to last year. And modest revenues of just $82.5 million mean there is a huge forward-looking expansion to continue to grow and turn the existing $3.5 billion strong valuation into something much more important. But do they deserve investors to show this leap of religion today and against Wednesday’s earnings? This strate robber doesn’t see it that way.
Now that stochastics warn of additional weakness after a bearish cross signal, it turns out that there’s plenty of room to move stocks away from their current value of about $64.75 to defy Lemonade’s recent low of $56.70. And later, in a risk-free market environment, Goldman’s predictions of a new all-time low may in fact prove prophetic.
For now, anyone who owns an extensive inventory of lemonade or is thinking of a stall deserves some other kind of insurance. That is, I would strongly recommend a protection bet to avoid exposure to long stocks.
Ultimately, buying a sale option will charge investors from the start. But in our opinion, and with customers’ profits tomorrow, the premium paid is much more than mere peace of mind and assistance mitigates much greater damage while strengthening the long-term position.
Chris Tyler is a former derivatives market location manufacturer founded on the ground in U.S. inventory exchanges. And the Pacific. Investment accounts under control do not have any value mentioned in this article. The data presented is based on your professional experience, but is strictly intended for educational purposes only. Any use of this data is one hundred percent the individual’s duty. For more market location data and similar thoughts, stay with Chris on Twitter @Options_CAT and StockTwits.
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