Why RLX Technology Inc. (RLX) Went Down On Friday?

We recently published a list of Friday’s 10 Worst Performing Stocks. In this article, we are going to take a look at where RLX Technology Inc. (NYSE:RLX) stands against other Friday’s worst performing stocks.

Wall Street’s main indices bounced back on Friday, erasing the entire week’s losses, as investor hopes were fueled by news that no government shutdown is happening.

The tech-heavy Nasdaq jumped the highest on Friday, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.

Ten companies, on the other hand, bucked an overall market optimism, posting modest losses during the day.

In this article, we have named the day’s worst performers and detailed the reasons behind their drop.

To come up with the list, we only considered those with $2 billion in 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 dropped its share prices by 3.83 percent on Friday to close at $2.26 apiece as investor sentiment was dampened by its dismal earnings performance last year.

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.

“Moving into 2025, we will prioritize innovation, compliance, and diversity in our product portfolio while navigating the industry dynamics to capture new opportunities and drive long-term success,” said RLX CEO Ying Wang.

Overall, RLX ranks 4th on our list of Friday’s worst performing stocks. 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.