10 Stocks Defy Monday’s Market Optimism

1. RLX Technology Inc. (NYSE:RLX)

RLX Technology fell for a second day on Monday, losing 13.27 percent to close at $1.96 each as investor sentiment was dampened by a downgraded rating and outlook for the company.

On Monday, Citi said it downgraded RLX to “neutral” from “buy” previously, while also lowering its price target to $2.5 from $2.8 previously following the company’s fourth-quarter earnings performance.

In the fourth quarter of the year, RLX said net income attributable to the company fell by 42.8 percent to RMB121.96 million from RMB213.5 million in the same period a year earlier, while revenues rose by 56 percent to RMB813.4 million from RMB520.5 million year-on-year.

For the full-year period, RLX said net income attributable to the company was up by 3.18 percent to RMB551.8 million from RMB534 million in 2023, while revenues increased by 73 percent to RMB2.748 billion from RMB1.586 billion year-on-year.

While we acknowledge the potential of RLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RLX but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.