Dear Reader,
Lemonade Inc., the US online insurance start up, more than doubled in its first day of trading after the IPO.
Yes, Lemonade almost tripled its revenue in 2019 compared to full year 2018. But the company is loss making. Even if Lemonade continues to grow revenue very quickly, it will take 2-3 years for Lemonade to become profitable.
That is why I think Lemonade is worth 1.5 bln. USD, much less than the current public markets valuation of Lemonade of 3.81 bln. USD. That said, insurance is a huge market waiting to be disrupted. That is why I think Lemonade is worth 1.5 bln. USD, which is a lot of money.
One must bear in mind that we are undoubtedly in a technology bubble measured by overvaluation of technology companies, especially US based, of between 30% and 80%. However, the technology bubble could well run a long course driven by ultra easy monetary policy of central banks and millennials and new investors entering continuously public markets.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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