Why RLX Technology Inc. (RLX) Soared On Tuesday?

We recently published a list of 10 Stocks That Led Tuesday’s Charge. In this article, we are going to take a look at where RLX Technology Inc. (NYSE:RLX) stands against other stocks that led Tuesday’s charge.

The stock market finished Tuesday’s trading in the red territory anew, erasing two consecutive days of gains, as investors repositioned their portfolios ahead of the Fed rate decision on Wednesday.

The Nasdaq registered the biggest drop among Wall Street’s main indices, declining 1.71 percent, followed by the S&P 500 with 1.07 percent, and the Dow Jones by 0.62 percent.

Despite the decline, ten companies showed off resilience during the session, finishing with modest gains. In this article, we have named the 10 top performers and detailed the reasons behind their gains.

To come up with the list, we only considered the stocks with a $2-billion market capitalization and $5 million in trading volume.

A worker in a factory environment assembling a e-vapor product.

RLX Technology Inc. (NYSE:RLX)

RLX Technology snapped a two-day losing streak on Tuesday, adding 6.63 percent to close at $2.09 each as investors repositioned portfolios on continued optimism about the company’s business outlook, supported by its strong earnings performance last year.

On Friday, 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 on the back of a strong international market presence.

The better full-year performance was achieved despite a 42.8-percent drop in net income attributable to the company in the fourth quarter of the year, which ended at RMB121.96 million versus RMB213.5 million in the same period a year earlier. Meanwhile, revenues for the quarter rose by 56 percent to RMB813.4 million from RMB520.5 million year-on-year.

Overall, RLX ranks 3rd on our list of stocks that led Tuesday’s charge. 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.

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