The AI-driven online insurer still has a bright future.

When Lemonade ( LMND 1.03% ) went public five years ago, it initially dazzled the market with the growth potential of its AI-powered insurance platform. With its AI chatbots and algorithms, Lemonade simplified the byzantine process of buying insurance. That approach made it popular with younger and first-time insurance buyers.

Lemonade's stock skyrocketed from its IPO price of $29 to a record high of $183.26 in early 2021. However, rising interest rates subsequently deflated its valuations and highlighted its ongoing losses, and it now trades at about $58. So will its stock soar again and set fresh highs over the next five years?

Understanding Lemonade's business

Lemonade initially only provided homeowners and renters in

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