The stock market was having a mixed day on Thursday, with the Dow Jones Industrial Average and S&P 500 indices in the red and the Nasdaq slightly higher.
High-flying insurance technology stock Lemonade (LMND 1.37%) is another story altogether. As of 2:45 p.m. EST, Lemonade was up 13% for the day to about $98.50 after briefly going as high as $111.68 earlier in the session.
There doesn't seem to be any company-specific news fueling today's move, which is just the latest in a string of upward spikes for Lemonade. The stock is up by more than 57% since the start of December, mainly fueled by analyst upgrades. Lemonade recently announced that it planned to expand into France and test a life insurance product by early 2021, so this could be continued optimism related to these developments.
It's also worth noting that there's quite a bit of IPO euphoria in the market right now, with Airbnb (NASDAQ: ABNB) debuting today at more than double its IPO price after a similar move for DoorDash (NYSE: DASH) yesterday. Plus, Thursday has been a strong day for high-growth tech stocks in general, with fellow tech names like MongoDB (NASDAQ: MDB), Crowdstrike (NASDAQ: CRWD), and Fastly (NYSE: FSLY) all moving sharply higher as well. So, this general investor sentiment could be causing much of today's move.
Regardless of the reason for this particular move, it's important to keep in mind that even after the recent rally, Lemonade's market cap is less than $6 billion. And it's perhaps the leading disruptor in the $5 trillion insurance market. So, if things go well for Lemonade in the next few years, this could be just the beginning.