When Will Altria Make the Next Writedown on Its Juul Investment?
The concerted effort against Juul Labs by tobacco regulators is taking its toll, as the electronic cigarette maker's share of the market further eroded at the end of 2019. Where the JUUL device once had north of 80% of the market, it closed out 2019 with about a 60% share, still substantial to be sure, but a clear sign the campaign against it is having the desired effect.
That should have Altria (NYSE: MO) investors wondering whether it will take another big writedown of its $12.8 billion investment in the e-cig maker. Although Altria just wrote off $4.5 billion worth of its 38% stake in Juul in the third quarter, the continued loss of market share and seemingly insurmountable hurdle Juul faces in navigating its premarket tobacco product application (PMTA) through the Food & Drug Administration's approval process suggests that won't be the last writedown.
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Source Fool.com
