Why Altria Stock Sagged on Wednesday
Key Points
This is affecting an FDA fast-track approval program, according to a news agency's report.
The resistance to tobacco products just doesn't seem to be melting away.
- 10 stocks we like better than Altria Group ›
Altria (NYSE: MO) stock couldn't quite make it over the hump of Hump Day. Investors traded out of tobacco titles generally on a media report that certain products in a regulator's fast-track approval program might not be approved quickly after all. While Altria wasn't as affected as other tobacco companies in the ensuing rout, it did suffer a share price decline of almost 1% on the day.
The problem with pouches
That fast-track program was devised by the U.S. Food and Drug Administration (FDA), which looks like it might be slow-walking the initiative. An article published Wednesday morning by Reuters, citing three unidentified sources, said that scientists at the regulator are hesitant to authorize the sale of nicotine pouch products currently under consideration.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Such goods deliver nicotine to users in a small sack that's placed in the mouth. This represents something of an evolution from traditional "chew," in which a plug of tobacco is absorbed in this manner.
On the back of that report, investors understandably traded out of tobacco stocks eagerly. The main reason Altria wasn't hit as badly is that six varieties of its on! PLUS line were the first pouch products approved under that fast-track program.
Regulatory push-back
So Altria effectively got in under the wire with those on! PLUS goods. Still, the Reuters report -- if accurate -- indicates that the folks in our government responsible for giving the nod to tobacco products aren't very keen to do so for certain offerings. This doesn't bode particularly well for any company in the business, even if they've benefited from the regulator's green light recently.
Should you buy stock in Altria Group right now?
Before you buy stock in Altria Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Altria Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $518,530!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,069,165!*
Now, it’s worth noting Stock Advisor’s total average return is 915% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 1, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
