RLX reported a 34% decline in revenue to $260.2 million as the China continues to crack down on vaping. Profits also took a hit as gross margin fell from 45.1% to 39.1%, and adjusted earnings per share also fell from $0.07 to $0.05.

There are a number of reasons to be wary of the stock at this point, including Chinese tobacco regulations, and the company's own weak results. It's best to avoid the stock until at least some of that smoke clears.$RLX Technology(RLX)$