Fidelity Investments slashes Juul Labs' valuation in Q2

Aug.02.2022
Fidelity Investments slashes Juul Labs' valuation in Q2
US investment group Fidelity significantly reduced Juul Labs Inc.'s valuation due to US vaping crackdown.

Fidelity Investments has significantly lowered the valuation of Juul Labs Inc. in the second quarter due to concerns over the U.S. crackdown on e-cigarettes.


According to data analysis collected by Bloomberg, asset management companies reported that their funds have reduced Juul's valuation by approximately 88%. The data shows that as of June 30th, Fidelity Funds lowered Juul's per share price from $41.01 on March 31st to $4.86, while during the same period, a capital group fund reduced the closely held company's stock price from $52.40 to $6.46.


These cuts have resulted in a series of write-downs for investors as the company undergoes FDA review. Altria Group Inc., the maker of Marlboro cigarettes, spent $12.8 billion in 2018 to acquire a 35% stake in Juul, but as of June 30th, their investment was only worth $450 million. According to PitchBook data, Tiger Global Management and Darsana Capital Partners have also invested in Juul, as has Dan Sundheim's D1 Capital Partners.


Representatives from Fidelity Investment Group declined to comment.


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