Citron Analysis’s Andrew Left criticized insurance coverage firm Lemonade Inc (NYSE: LMND) on Friday, saying its stock a number of is predicated on empty advertising techniques.
The Lemonade Bear Case: In a Twitter live video, Left dismissed Lemonade Inc‘s claims of bringing new know-how to the insurance coverage trade, saying the corporate’s know-how is not any completely different from insurers like Progressive Corp. (NYSE: PGR) or State Farm.
“They have been mendacity to their clients and their shareholders,” stated the famous quick vendor.
The corporate has not responded to a request for remark.
Not An ESG Firm: He additionally blasted Lemonade’s claims of being a “social good” firm as a straightforward advertising ploy.
“It is taking part in on the millennial buyers,” he stated, including that the corporate has the next a number of than Zoom Video Communications (NASDAQ: ZM), Uber Applied sciences Inc (NYSE: UBER) or Tesla Inc (NASDAQ: (TSLA)).
Lemonade insiders have bought $400 million previously six months however gave simply $1 million to charity final 12 months, he stated.
Left stated the Securities and Trade Fee and the Federal Commerce Fee ought to look extra intently at corporations that make claims of being socially accountable.
price Motion: Shares of Lemonade ended Friday’s buying and selling down 6.79% at $147.74 on Friday. Left’s video posted to Twitter at 11:30 a.m.
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