Motley Fool Money E-Cigarette Ruling Hits Wall St.
Jun 22, 2022
Bill Mann, a Senior Analyst at Motley Fool, shares his expertise on recent FDA moves against Juul's e-cigarettes and its impact on Altria Group, where shares plummeted. He discusses the resilience of other tobacco competitors and his thoughts on investing in 'sin stocks.' The conversation also shifts to MicroStrategy's Bitcoin holdings, evaluating the risks of potential margin calls and their implications on shareholder value. Mann highlights the strength of companies like Meta and NVIDIA, poised for opportunity amidst market fluctuations.
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E-Cigarette Ban vs. Cigarettes
- Juul e-cigarettes may be banned before traditional cigarettes, despite Altria's ownership in both.
- This is surprising, given the historical precedent and potential return to traditional cigarettes if vaping is restricted.
Altria's Juul Investment
- Altria's Juul investment has been unsuccessful due to regulatory hurdles.
- The FDA's authority over e-cigarettes complicates Altria's pivot to other vaping products.
Altria's Stock Performance
- Altria's stock has declined, but their cigarette division profits remain stable.
- Juul's performance and the changing landscape of cigarette consumption contribute to this decline.