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Fidelity Capital cuts Juul's valuation by 88%

Fidelity Capital cuts Juul's valuation by 88%

2022-08-02

Fidelity Investments and Capital Group Inc. slashed the valuation of Juul Labs Inc. in the second quarter as the U.S. crackdown on e-cigarettes left the company struggling, according to Bloomberg.


Both asset managers reported that their funds slashed the value of Juul's stock by about 88%, according to an analysis of data compiled by Bloomberg.


As of June 30, Fidelity funds cut Juul to $4.86 a share from $41.01 on March 31, while Capital Group funds lowered the tightly held company to $6.46 from $52.40 in the same period, the data showed. .


The cuts add to a series of writedowns for investors backing the e-cigarette maker, which is under scrutiny by the U.S. Food and Drug Administration.


Altria, the maker of Marlboro cigarettes, paid $12.8 billion for a 35 percent stake in Juul in 2018, valuing the investment at $450 million as of June 30. Tiger Global Management and Darsana Capital Partners also invested in Juul. The same goes for Dan Sundheim's D1 Capital Partners.


A representative for Fidelity Capital Group declined to comment.


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