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

We recently published a list of 10 Firms Suffer Amid Optimistic Market Environment. In this article, we are going to take a look at where RLX Technology Inc. (NYSE:RLX) stands against other firms that suffer amid optimistic market environment.

Wall Street’s main indices recovered losses on Friday, as investors repositioned portfolios while digesting the ongoing trade tensions between the world’s two largest economies.

After a battering this week, the Nasdaq finished the day up 2.06 percent; the S&P 500 rose 1.81 percent; and the Dow Jones grew 1.56 percent.

Ten companies, on the other hand, defied a wider market optimism, recording modest losses during the day. In this article, we have listed Friday’s worst performers and detailed the reasons behind their declines.

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

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

RLX Technology dropped its share prices for a third straight day on Friday, shedding 2.30 percent to finish at $1.7 apiece as investors resorted to profit-taking while repositioning portfolios to mitigate the risks of the ongoing market uncertainties.

RLX, an electronic cigarette maker, is underway with its global expansion. Late last year, the company said it would continue to focus on strategic global expansion and innovation to enhance shareholder value. However, with the escalating trade war globally, concerns were raised over whether the company’s expansion program remains on track.

In the fourth quarter of 2024, RLX saw net revenues surge by 56 percent to RMB813.5 million from RMB520.5 million in the same period a year earlier. However, net income dropped by 41 percent to RMB127.4 million from RMB216 million year-on-year.

Revenues for the full-year 2024 period jumped by 73 percent to RMB2.75 billion from RMB1.59 billion year-on-year, while net income rose by 4 percent to RMB564.3 million from RMB541 million.

Overall, RLX ranks 10th on our list of firms that suffer amid optimistic market environment. While we acknowledge the potential of RLX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RLX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.