<p><img src="https://static6.businessinsider.com/image/6000a9dcb805070018995312-1607/59473193_2257847124475754_8277645647302098944_o.jpg" border="0" alt="Lemonade insurance cofounders Shai Wininger, left, and Daniel Schreiber" style="color: #000000;" data-mce-source="Lemonade" data-mce-caption="Lemonade insurance founders Shai Wininger, left, and Daniel Schreiber"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p><a href="https://markets.businessinsider.com/stocks/lmnd-stock">Lemonade</a>'s stock dropped as much as 11% on Thursday after Andrew Left's notorious short-selling fund, Citron Research, predicted the online-insurance platform will fall back to $100.</p><p>Founded by Daniel Schreiber and Shai Wininger, Lemonade operates an online insurance platform that uses AI chatbots to help service customers.</p><p>Lemonade finished Wednesday at $176.64 per share, meaning that a decline to $100 would be a 43% loss.</p><p>Of course, that hasn't been the case very often of late, as short-sellers have struggled over the past few years. Misses on <a href="https://www.businessinsider.com/jim-chanos-reduces-size-of-tesla-short-bloomberg-news-2020-12">big bets on Tesla</a>, Moderna, and others have cost short-bias funds billions.</p><p>In fact, short-biased funds lost over 47% through November 2020 alone, according to the HFRX Equity Hedge: Short Bias Index.</p><p>Citron acknowledged the poor performance of short-sellers over the past few years but still declared the fund would be ripping "management a new one."</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/cathie-wood-shares-2021-outlooks-on-tesla-economy-bitcoin-ark-2021-1'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener" data-analytics-position="3" data-analytics-module="">Cathie Wood's ARK Invest runs 5 active ETFs that more than doubled in 2020. She and her analysts share their 2021 outlooks on the economy, bitcoin, and Tesla.</a></em></p><p>Lemonade was one of the most successful IPOs of 2020, and its run has continued into the new year. Shares are up over 130% since the stock's first day of trading last July.</p><p>Citron's bearish news comes just one day after Lemonade announced it will upsize its primary public share offering from 3 million shares to 3.3 million.</p><p>Priced at $164 per share, the company now expects to raise nearly $545 million from the move.</p><p>Lemonade now boasts a market cap north of $9 billion. A staggering number for a company that posted revenue of just $65 million for the nine months that ended on Sept. 30 while losing $3.41 per share.</p><p>Still, bulls argue the impressive revenue growth and revolutionary AI-based online insurance platform will allow Lemonade to thrive going forward.</p><p><a href="https://markets.businessinsider.com/stocks/lmnd-stock">Lemonade</a> currently has two buy ratings, two sell ratings, and five hold ratings from analysts, while the stock trades at nearly 100-times sales.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/tesla-stock-price-prediction-technical-analysis-wedge-rsi-sven-henrich-2021-1'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener" data-analytics-position="2" data-analytics-module="">'Vastly technically disconnected': A market strategist breaks down the 3 indicators that show Tesla is overpriced - and says it's due for a 17% correction in the next 6 weeks</a></em></p><p><a href="https://markets.businessinsider.com/news/stocks/lemonade-stock-price-drops-short-seller-citron-research-tweet-2021-1-1029970893#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/melissa-maker-clean-your-home-quickly-cleaning-expert-2017-4">A cleaning expert reveals her 3-step method for cleaning your entire home quickly</a></p>
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