MO Stock Price: Altria Group Inc extends losses after nicotine reduction announcement
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UNLOCK OFFER- NYSE:MO fell by 3.85% on Tuesday, adding to its massive losses from the previous day.
- The Biden administration announced a lowering of nicotine levels in American cigarettes.
- The FDA begins to look into banning menthol cigarettes completely.
NYSE:MO investors received a double slap in the face on Monday, as the Biden administration looks to shake up the tobacco industry to dissuade addiction amongst youths. For those investors who may not recognize the name Altria Group, it is the rebranded company formerly known as Phillip Morris, one of the tobacco giants in America. On Tuesday, shares extended losses from Monday and fell 3.85% alongside the broader market, and closed the trading session at $47.19. As an $87 billion company, Altria stock has been as steady as they come, and many dividend income investors target the company for its generous 7.01% yield.
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The big news that came on Monday was that the Biden administration is seriously considering lowering the nicotine levels in American cigarettes. Nicotine is the addictive component found in most cigarettes, and it is believed that lowering the amount will have a drastic impact on youth addiction and long-term usage. Nicotine addiction is one of the ways in which younger Americans are targeted by big tobacco companies, and less lifelong smokers would mean a lower overall strain on the country’s health system.
MO Stock forecast
In addition to that report, the FDA is also looking into considering a country-wide ban on menthol cigarettes, the products most likely to be used by smokers aged 12 to 17 years old. The CDC and FDA both agree that the menthol flavor gives younger smokers the impression that cigarettes are less harmful, and possibly even more addictive than non-menthol cigarettes. Shares of Altria fell 13% on Monday after the news.
- NYSE:MO fell by 3.85% on Tuesday, adding to its massive losses from the previous day.
- The Biden administration announced a lowering of nicotine levels in American cigarettes.
- The FDA begins to look into banning menthol cigarettes completely.
NYSE:MO investors received a double slap in the face on Monday, as the Biden administration looks to shake up the tobacco industry to dissuade addiction amongst youths. For those investors who may not recognize the name Altria Group, it is the rebranded company formerly known as Phillip Morris, one of the tobacco giants in America. On Tuesday, shares extended losses from Monday and fell 3.85% alongside the broader market, and closed the trading session at $47.19. As an $87 billion company, Altria stock has been as steady as they come, and many dividend income investors target the company for its generous 7.01% yield.
Stay up to speed with hot stocks' news!
The big news that came on Monday was that the Biden administration is seriously considering lowering the nicotine levels in American cigarettes. Nicotine is the addictive component found in most cigarettes, and it is believed that lowering the amount will have a drastic impact on youth addiction and long-term usage. Nicotine addiction is one of the ways in which younger Americans are targeted by big tobacco companies, and less lifelong smokers would mean a lower overall strain on the country’s health system.
MO Stock forecast
In addition to that report, the FDA is also looking into considering a country-wide ban on menthol cigarettes, the products most likely to be used by smokers aged 12 to 17 years old. The CDC and FDA both agree that the menthol flavor gives younger smokers the impression that cigarettes are less harmful, and possibly even more addictive than non-menthol cigarettes. Shares of Altria fell 13% on Monday after the news.
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