brutal
$Lemonade (LMND.US)$ you're looking at a $39 decline basically a 37% decline in 2 weeks no bad news from the company specifically.
this is far from a rotation because if you think about it here's a highly efficient company that uses AI to reduce their workload already so the more efficient AI agents become it's a known fact that workforces are going to decline but that increases the profitability of a company it's the same argument for humanoid replacing a person in a factory because the humanoid can work 24/7 365 with no brakes they don't require insurance there's no sick days there's no paid time off there's no vacations. so after a humanoid is bought it increases the efficiency of a company in perpetuity so when AI is scaled within the insurance industry it increases profitability stocks should be trading higher not lower.
and this is the type of sell-off that is gut-wrenching painful if you're a shareholder because your left scratching your head thinking what the hell's going on with the market did we just have a crash and you look at the Dow and we're at an all-time high this week
this is not a rotation that's taking place in the market I think everybody with any time in the market understands sectors have rotated in prior years it happens all of the time when you have a shift in economic policy from a president you have institutions that align themselves in industries and in companies that they believe are going to be winners and sell the losers when this happens you don't see this type of a crash it doesn't happen like this it doesn't happen and this is just one company you can go down the list of other companies that have just been destroyed in the past two weeks and some have exceeded earnings exceeded margins and exceeded guidance expectations and yet the stocks have been chopped by 20 30 40%
we have rotations all the time if there's a sentiment that you're going into a recession there's industries that are known to do well in an economic slowdown if we are coming out of a recession it's a known fact which industries are going to do well so we have rotations all of the time this is not a rotation these are targeted attacks by hedge funds there's collusion that's taking place underneath the market and retail is getting absolutely fucking crushed if you are in the wrong stocks and right now everything is up for attack there's a case and argument that could be made for every company and virtually every industry that AI is going to eat it a new asshole and replace it.
if someone can give me a concrete reason why lemonade has been taken out behind the barn and shot by 39% inside of 2 weeks I'm all ears I'd love to learn so by all means chime in
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37+ yrs in the trenches, raised 100mil for start ups, syndicate ipo's, yrs on trading desk
opinion not financial advice
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Kyotocharm : Rotation, probably no. This is the Street demanding its pound of flesh. Big money has been holding lots of cash on the side since 2024 waiting for a recession. The massive run up after the April 2025 crash was fueled mostly by retai (the not so dumb money). There was no retest of the lows, just a straight V recovery. By the time big money got in, prices were already elevated. Is there any universe in which smart money will let dumb money get away with that? Big money doesnt need a pullback, they simply create their own discount no matter what. Software is out, metals are in, AI capex is irrational etc. etc. They are getting stocks dowm really cheap BEFORE they make SPY break that rising bearish wedge and tumble a good 10-15%.