Why Lemonade Stock Soared by 16% This Week

Key Points
The Morgan Stanley pundit now believes the stock is a buy.
He waxed positive about the company's recent collaboration with a monster EV maker.
- 10 stocks we like better than Lemonade ›
An analyst move on Tuesday sweetened investor sentiment toward next-generation insurance company Lemonade (NYSE: LMND), as did developments in the technology that pundit was bullish about. With that, the stock rose by more than 16% over the course of the week, according to data compiled by S&P Global Market Intelligence.
Accelerating momentum
The analyst was Bob Huang of ever-influential investment bank Morgan Stanley. He upgraded his recommendation on Lemonade to overweight (read: buy) from equalweight (hold). He also raised his price target to $85 per share, up from $80.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
According to reports, Huang's new take centers on Lemonade's integration with electric vehicle (EV) incumbent Tesla's onboard vehicle data (if the car's owner provides permission, of course). The insurer is offering a generous 50% discount on insurance for Tesla drivers who engage the full self-driving (FSD) feature in their vehicles.
This positions Lemonade to be something of a first mover in the inevitable explosion of autonomous vehicles, which are already prowling the streets in selected American cities.
Ahead of the pack
Huang's accurate assessment of Lemonade's potential in the burgeoning self-driving space was bolstered by a major development. On Thursday, EV maker Rivian and rideshare king Uber announced a large-scale partnership, under which Uber will invest up to $1.25 billion in Rivian, and the two companies will together launch tens of thousands of self-driving R2 robotaxis.
After a series of fits and starts, the momentum for self-driving technology is clearly accelerating. We can expect greater autonomy on our roads in the coming years, and Lemonade management is to be commended for positioning the company at the forefront of the segment. This will be an exciting stock to watch for sure.
Should you buy stock in Lemonade right now?
Before you buy stock in Lemonade, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lemonade wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $494,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,094,668!*
Now, it’s worth noting Stock Advisor’s total average return is 911% — a market-crushing outperformance compared to 186% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 20, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lemonade, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.