|The stock market still makes no sense. Lemonade, an insurance company IPO’ed this week with:
- $67M in revenue
- $108M in losses
When they went out to the public markets, they valued their company at $1.6B, which seemed really really high for a company that lost over $100M last year. Turns out it wasn’t too high, it was WAY too low, because literally nothing makes sense at all.
They priced their IPO at $29 and within 5 days the stock was trading at $92.60, over 3x that! That values the company at closer to $5B, because nothing makes sense!!
These companies are lemons and the stock market is turning them into lemonade.