How to Buy Juul Stock
Juul isn't currently publicly traded, but there are still a few ways to invest in the company. Read on to learn how to do it.
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With a 68% market share, Juul is the most popular e-cigarette company in the US.
It's also one of the most valuable private companies in the world, worth over $38 billion. And it's backed by Altria, the maker of Marlboro cigarettes.
With all that said, it's no wonder that investors are interested in investing in the company. However, here's the catch: Juul is a private company. This means that its stock isn't publicly traded.
Don't worry, there are still ways to invest indirectly in Juul. Read on to find out how.
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Can you buy Juul Stock?
No. Juul is a private company, so its stock isn't publicly traded. This means that you can't buy shares of Juul directly.
Luckily, there are still a few ways to invest in Juul indirectly:
- If you're an accredited investor, you can try secondary markets
This is where investors buy and sell shares of private companies. - You can invest in Juul's major shareholders
Instead of buying Juul stocks directly, you could buy shares of Tiger Global and Fidelity Investments. These are some of Juul's recent major investors.
Let's start with how to buy Juul stock in secondary markets.
Juul is owned by its founders, Adam Bowen, and James Monsees, as well as a number of private investors.
How to Buy Juul Stock Before the IPO Date
Juul stock can be purchased through secondary platforms such as Equitybee.[1] But you must qualify as an accredited investor to invest in private companies.
So, how do you access secondary platforms?
Here are simple steps to access secondary platforms:
- Sign up online with your chosen platform (Example: Equitybee)
- Undergo verification of your accreditation
- Once verified, you can browse available offerings
- Fund your account and buy shares
Remember, requirements may differ among platforms. The minimum investment is also pretty high (for example, Equitybee requires a $10,000 minimum).[2]
Invest in High-Growth Startups
Equitybee gives accredited investors access to high-growth, VC-backed startups. By funding employee stock options, accredited investors can gain investment exposure to private companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from any successful liquidity events. Subject to availability. Investments involve risk; Equitybee Securities, member FINRA
Juul has never had a stock IPO. As a privately held company, Juul's shares are not traded on any public stock exchange.
How to Indirectly Invest in Juul Stock
To indirectly invest in Juul stock, you could invest in one of its major investors or one of the companies it acquired.
Currently, major investors in Juul include capital ventures and hedge funds such as Tiger Global Management and Fidelity Management & Research Company. Unfortunately, as private companies, you won't be able to buy company shares directly.
No, Altria no longer own shares of Juul. In March 2023, Altria exchanged its minority ownership stake in Juul for the right to license some of Juul's intellectual property.[3] This means that Altria is no longer financially invested in Juul.
Why invest in Juul Stock
Juul is popular, but that's not the only reason investors are eyeing it. Here are a few others to consider:
- Juul is a leading player in the growing e-cigarette market
E-cigarettes are becoming increasingly popular as a way to quit smoking, and Juul is one of the most popular brands on the market. In fact, Juul controls about 48% of the US e-cigarette market. - Juul has a strong brand and a loyal customer base
Juul is known for its high-quality products and its innovative marketing. The company has built a strong brand among young adults, and its products are highly popular among vapers. - Juul has a large addressable market
The global e-cigarette market is expected to grow from $18.3 billion in 2022 to $47.0 billion by 2030.[4] Juul has a significant opportunity to expand its market share in developed and emerging markets.
Juul was founded in 2015 and quickly became one of the most popular e-cigarette brands in the United States. The company's revenue grew from $200 million in 2017 to $1.3 billion in 2018.[5] However, Juul's revenue has since fallen sharply due to a number of factors, including increased government regulation and competition from other e-cigarette brands. In 2022, Juul's revenue was about $800 million.[6]
Risks in Investing in Juul
Despite being a top brand in vaping, there are important downsides to consider:
- Regulatory risk
Juul is facing regulatory challenges in different states. For example, in 2020, the US Food and Drug Administration (FDA) banned the sale of certain flavored e-cigarette pods,including those of Juul's.[7] This ban was later overturned by a court, but it is possible that the FDA could take further action against Juul in the future. - Legal risk
Juul is facing a number of lawsuits from consumers and regulators. These lawsuits say that Juul misled consumers about the health risks of its products and that it marketed its products to minors.[8] Juul has denied these allegations, but the outcome of these lawsuits could have a significant impact on the company's financial performance. - Reputation risk
Juul has been criticized for its role in the youth vaping epidemic. The company has also been accused of misleading consumers about the health risks of its products. This negative publicity could damage Juul's reputation and make it difficult for the company to attract new customers.
Yes, you can still buy Juul devices and products today. However, Juul's products are not available in all countries and regions. In the United States, Juul's products are only available for purchase by adults over the age of 21.
What is Juul's valuation?
Juul was founded in 2015 and quickly became one of the most valuable startups in history.
In 2018, Altria Group, the maker of Marlboro cigarettes, invested $12.8 billion for a 35% stake in Juul.[9] However, Juul's valuation plummeted because of the regulatory issues and lawsuits filed against them.
Juul lost $423 million in 2020, and its revenue has fallen from $5.6 billion to $2.4 billion.
Altria also reduced the value of its investment in Juul to just $250 million by the end of 2022. In March 2023, Altria exchanged its minority stake in Juul for a license to use some of Juul's intellectual property.
This move indicates that Altria no longer deems Juul a worthwhile investment. Altria also purchased NJOY, another e-cigarette maker.
What are the alternatives to Juul stock?
Here are other leading vaping brands worldwide that you may consider:
- Vuse
Vuse is a closed-pod e-cigarette system with a US market share of 30%.It is owned by Reynolds American Inc. (NYSE:RAI), a subsidiary of British American Tobacco. Vuse is also trading under RAI.[10]
- Smok
Smok is a Chinese manufacturer of e-cigarettes and vaping accessories. It offers many e-cigarette products, including pod systems, vape mods, and atomizers.Since 2021, it has been preparing for an IPO and was initially valued at $500 million Hong Kong IPO.
Over 80 million people worldwide use these devices, sold online and in stores in countries such as France, Kuwait, and the UK.
Bottom Line
There is no direct way to buy Juul stock right now. However, you can invest in Juul indirectly with its major investors. Or you can also buy Juul stock in a pre-IPO secondary marketplace.
But investors should carefully consider their investment goals and risk tolerance before investing in Juul or any other private company.
References
- ^ Equitybee. Juul Labs, Retrieved 12/11/2023
- ^ Equitybee. What Is The Minimum Investment Amount?, Retrieved 12/11/2023
- ^ Altria. Altria Exchanges Minority Stake in JUUL Labs for Heated Tobacco Intellectual Property Rights, Retrieved 12/11/2023
- ^ Zion Market Research. E-Cigarette Market Size, Share, Growth, Trends, Forecast 2030, Retrieved 2/21/2024
- ^ BNN Bloomberg. Juul Expects Skyrocketing Sales of $3.4 Billion, Despite Flavored Vape Ban, Retrieved 2/21/2024
- ^ Bloomberg. E-Cigarette Maker Juul Labs Is Seeking $1 Billion in Funding, Retrieved 2/21/2024
- ^ U.S. Food And Drug Administration . FDA Finalizes Enforcement Policy On Unauthorized Flavored Cartridge-based E-cigarettes That Appeal To Children, Including Fruit and Mint, Retrieved 12/11/2023
- ^ Office of Attorney General Ashley Moody. Attorney General Moody Takes Action Against Juul For Targeting Minors To Purchase Addictive Nicotine Products, Retrieved 12/11/2023
- ^ Altria. Altria Makes $12.8 Billion Minority Investment In JUUL To Accelerate Harm Reduction and Drive Growth, Retrieved 12/11/2023
- ^ Reynolds American Inc. Building Brands, Retrieved 12/11/2023
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