Raccoons Never Sleep


A raccoon (in Epsilon Theory lingo) is a financial huckster or conman.

I hate raccoons.


P&C insurer Lemonade (LMND) went public last year and now has a $5 billion market cap. They’re not just a sleepy insurance company, of course. No, no … they’re actually a cutting edge AI Company! TM.

That’s why it’s okay that they lose more money with every new customer.

That’s why their CFO, Tim Bixby, gets a puff-piece written in the WSJ’s hard-hitting CFO Journal section, spouting gems like this:

Lemonade has made it a priority in recent months to communicate more with nonprofessional investors about its business model and plans, Mr. Bixby said. The idea is to reach young or novice investors where they spend their time—for example on YouTube or investment apps—and speak about its strategy and performance in simple terms, he said.

“While we can’t directly affect our stock price, we can expand and widen the communication net to bring in a broader, more diverse range of investor opinions and strategies,” Mr. Bixby said.

To be clear, by “a more diverse range of investor opinions and strategies”, he means the diamond hands Reddit crew and the momo hedgies who play that crowd like a fiddle. Did we mention that Lemonade is actually an AI Company! TM ?

But then we got this gem of a social media campaign. Oops!

Shot …

Chaser:

They’ve deleted the tweet above and issued a classic non-denial denial on their blog:

Let’s be clear: 

AI that uses harmful concepts like phrenology and physiognomy has never, and will never, be used at Lemonade.

We have never, and will never, let AI auto-reject claims.

LOL. So their AI Jim textbot + video recognition program (I am not making this up) isn’t using phrenology and it can’t auto-reject claims. No, no … the supervisor will reject the claim.

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Disclosure: This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the ...

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