There is nothing sour about this Lemonade (NYSE:LMND). In fact, investors likely feel that LMND stock is rather sweet today, as shares soar 20% in intraday trading. But without any company news, what is behind the big move?
Well, a big call is sending LMND stock up, but it is not from a typical analyst on Wall Street. Instead, it appears that a recommendation from Tom Gardner, founder and CEO of The Motley Fool, has Lemonade shares surging on Thursday.
According to a Twitter (NYSE:TWTR) user, an alert sent out via the Stock Advisor service encourages readers to buy LMND stock. In the message, Gardner wrote that Lemonade is an industry disruptor, largely thanks to its use of artificial intelligence. Importantly, Lemonade has long been seen as a game-changer for the insurance industry because of how it shakes up the process.
So what else do you need to know here? Well, besides the recommendation from Gardner, many investors were already bullish on LMND stock. Shares came public in July 2020 at an offer price of $29. At the time, investors saw Lemonade as one of the first promising IPOs after the novel coronavirus disrupted the stock market.
Additionally, everything about the business model seemed perfectly catered to the pandemic at-home lifestyle.
The Bottom Line on LMND Stock
What do I mean? Well, Lemonade promises that homeowners, renters and pet owners can almost instantly get their policies through a fuss-free website. The company touts its artificial intelligence platform, helping it speed up the insurance process and craft personalized policies. Additionally, it has appealed to younger users with its promise to give back extra money and donate to charity.
Keep a close eye on LMND stock here. At the time of this writing, shares were up nearly 22%.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.