There has been no news about RLX Technology Inc (NYSE:RLX) so far this week but that did not stop the company’s stock from sliding by as much as 6% on Tuesday. Stocks may often rise or fall without any reason and t is not an entirely uncommon occurrence.
Trading Data
On Tuesday, RLX stock decreased 5.88% to $1.76 with more than 4.68 million shares, compared to its average volume of 16.44 million shares. The stock moved within a range of $1.7300 – 1.8100 after opening trade at $1.79.
Earnings Recap
However, in this situation, it could often be a good move for investors to perhaps take a look at the last events about the company and then make their minds up about the situation. RLX Technology had been in the news last week on May 20 when it announced its financial results for the fiscal quarter that had ended on March 31, 2022.
In the first fiscal quarter, the Chinese e-vapor technology firm recorded revenues of RMB1714.5 million and which was less than the revenues of RMB2398.5 million in the prior-year period. On the other hand, the gross margins for the period had come in at 38.35 and that was again lower than the gross margins of as much as 46% in the prior-year period. It is difficult to say if the latest decline in the stock was related to the financial results but it may have been a factor.
Key Quote
“During the first quarter of 2022, we continued to focus on our core strategy and maintain our leading position in the industry while preparing for the anticipated regulatory changes. As the new regulatory framework has come into effect and detailed implementation measures have been released, we are proactively adapting our business to the new market environment by applying for the relevant licenses and developing qualified products that meet the requirements of the most recent national standards. We believe that, by leveraging our leading research and development abilities, we are able to launch market-leading products that conform to the national standards and satisfy our users’ needs,” said Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors and CEO of RLX Technology.
Technical Data
RLX stock is below the 20-Day and 50-Day Moving averages of $1.91 and $1.95 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.67.
