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Altria Group Inc. (MO) is a holding company whose main subsidiaries produce tobacco products. The company traces its roots back to 1822 when the U.S. Smokeless Tobacco company took its first steps. Another important piece of the company is Philip Morris, creator of the iconic Marlboro cigarette brand, which was established in London in 1847, and later came to America with New York incorporation in 1902. Next, an American owned branch of the company was incorporated in Virginia in 1919. This company expanded throughout the 1930s, '40s and '50s, and by the 1980s, had become the leading cigarette maker in the U.S. In 1985, Philip Morris Companies incorporated as a holding company and parent of Philip Morris Inc. It was this holding company that was later renamed Altria Group in 2003, a name that the company said would better reflect the diversity of its portfolio beyond tobacco. However, tobacco remains the primary business of Altria's subsidiaries, with tobacco products comprising about 99.75% of the company's $24.483 billion of net revenue in 2023. As of May 13, 2024, Altria has a market cap of $77.122 billion.

In the past, the company has made major attempts to diversify into other lines of business, especially during the latter decades of the 20th century when consumer demand for tobacco began to decline in key markets. Philip Morris acquired a controlling interest in the Miller Brewing Co. in 1970 and purchased soft-drink maker Seven-Up Co. in 1978. Between 1985 and 2000, the company acquired General Foods Corp., Kraft Inc., and Nabisco, all of which were merged into what eventually became Kraft Foods Inc. However, these acquisitions were later divested. Kraft Foods was spun off in 2007. And the company also later sold Seven-Up and Miller Brewing.

Since these actions, the company's focus has been primarily domestic after spinning off Philip Morris International Inc. (PM) in 2008. Altria, including the domestic Philip Morris company which it retained, has boosted sales in the tobacco market both through partnerships, new products, and through a series of acquisitions into new areas with the potential for rapid growth. After scrapping talks to reunite, for example, the company and Philip Morris International launched IQOS, a heated tobacco product designed to provide users with the rush from nicotine, but with fewer toxins. IQOS launched in October 2019 in the United States and signals Altria's willingness to innovate in creating new products.

The company's series of acquisitions illustrate, again, its focus on shifting away from the shrinking cigarette market and, instead, moving into related markets. These include buying companies that sell smokeless tobacco, marijuana, electronic cigarettes, cigars, and nicotine pouches. We look in more detail at some of these acquisitions below. Breakdowns for revenue and profit are available for some, but not all, of these companies.

UST is a holding company that was first incorporated in 1986. However, one of its main subsidiaries, U.S. Smokeless Tobacco Company LLC, traces its roots back to a tobacco shop opened by George Weyman in Pittsburgh in 1822. UST was bought by Altria in 2009. The U.S. Smokeless Tobacco purchase added two leading smokeless tobacco brands to the Altria product family: Copenhagen and Skoal. Smokeless tobacco use, unlike that of cigarettes, has been increasing since 2000.

The UST acquisition also added wine manufacturer Ste. Michelle Wine Estates to Altria's portfolio. However, on July 9, 2021, Altria announced that it had reached an agreement to sell its wine business to private equity firm Sycamore Partners Management for approximately $1.2 billion. Altria planed to use the proceeds from the sale for additional share repurchases. The deal was completed later that year.

Canadian cannabis producer and distributor Cronos Group Inc. (CRON) was founded in 2012. In December 2018, Altria announced that it would acquire newly issued shares of Cronos worth $1.8 billion for a 45% ownership interest in the company. The agreement also included a warrant allowing Altria to increase its ownership to 55% over the next four years. Marijuana stock prices have fallen tremendously since the deal. The acquisition is a further demonstration of Altria's intent to diversify. Altria's ownership interest in Cronos Group at the end of 2023 stood at 41.1%, down from its initial 45% stake due to additional shares being issued by Cronos and for which Altria did not exercise its fixed-price preemptive rights to purchase additional shares at a pre-agreed price. Altria never exercised the warrant to increase its ownership stake to 55% either.

Silicon Valley startup and e-cigarette maker Juul Labs Inc. was founded in 2015. Altria acquired a 35% stake in Juul in 2018, valuing the company at $38 billion. The acquisition demonstrates Altria's shift toward more innovative segments of the tobacco market. However, the acquisition hasn't been smooth. Vaping, the term used to describe the inhaling and exhaling of vapor produced by e-cigarettes, has come under stiffer regulatory scrutiny from health officials as a vaping-related illness has led to a number of deaths and hospitalizations. Amid these health concerns, Juul has faced mounting lawsuits over its marketing practices as vaping among teens has surged.

In April 2020, the Federal Trade Commission (FTC) filed a lawsuit against Altria claiming that the company's 35% investment in Juul violated antitrust laws. The FTC alleges that Altria and Juul made an illegal side deal that resulted in Altria pulling its own e-cigarettes from the market just prior to its investment in Juul, thus eliminating a source of competition from the market. The trial began on June 2, 2021. If Altria is found guilty of violating antitrust laws, the company could be forced to divest its stake in Juul and result in termination of the noncompete deal between the two companies.

John Middleton Inc. was first established by John Middleton in 1856 as a small tobacco shop selling cigars and pipe tobacco in downtown Philadelphia. A century and a half later, Altria acquired the company from privately held Bradford Holdings. Today, John Middleton Co. manufactures large machine-made cigars and pipe tobacco as a wholly owned subsidiary of Philip Morris USA. The acquisition illustrates another way that the company is diversifying away from cigarettes and into sectors of the tobacco market that are growing. At the time of the acquisition, Altria said that the market for machine-made cigars had grown at an annual compound rate of 4% between 2003 and 2007.

Burger Söhne Holding AG, which is headquartered in Switzerland, was founded in 1864. Last year, Altria acquired an 80% stake in the Burger Group and formed a subsidiary called Helix Innovations LLC to act as the parent company of the Burger Group subsidiaries engaged in the production of a flavored nicotine pouch with the brand name . The productis a pouch that users put in their mouth in order to experience a nicotine rush without the chewing, spitting, and odor of tobacco that comes from chewing tobacco.

As part of our effort to improve the awareness of the importance of diversity in companies, we have highlighted the transparency of Altria Group’s commitment to diversity, inclusiveness, and social responsibility. The below chart illustrates how Altria Group reports the diversity of its management and workforce. This shows whether Altria Group discloses data about the diversity of its board of directors, C-suite, general management, and employees overall, across a variety of markers. We have indicated that transparency with a ✔.

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American depositary receipts (ADRs) of Arm Holdings (ARM) are rising in premarket trading as the U.K. chip giant is reportedly working on plans to develop artificial intelligence (AI) chips, while its parent, Japan’s SoftBank Group (SFTBY), posted a near doubling of its net asset value and narrowing losses; Apple (AAPL) may be nearing a deal with OpenAI to put ChatGPT on iPhones; Chinese e-commerce platform Temu is reportedly pivoting out of the U.S. as growth slows and it looks to TikTok's troubles with the government; Microsoft (MSFT) and Amazon (AMZN) are among a slew of companies investing billions of dollars in France as part of President Emmanuel Macron’s push to draw international investors; and major investors such as Warren Buffett and Dan Loeb will give an insight into how their equity positions have changed as they release 13F filings by Wednesday. U.S. stock futures are little changed ahead of key data this week that may determine when interest rates are to be cut by the Federal Reserve. Here’s what investors need to know today.

ADRs of U.K.-based chip design giant Arm Holdings (ARM) are rising 4% in premarket trading after reported Sunday that the company plans to develop artificial intelligence (AI) chips, aiming to launch its first prototype in early 2025. According to the report, Arm—of which Japan’s SoftBank Group (SFTBY) owns a 90% stake—will establish a new AI chip unit and build a prototype by spring next year before turning to contract manufacturers to have the chips mass produced by fall 2025. Meanwhile, SoftBank reported a near doubling of its net asset value (NAV) due largely to the higher share price of Arm. The company said its net asset value grew to 27.8 trillion yen ($178.4 billion) as of March 31. It also reported a net loss of around 228 billion yen in the fiscal year ended March 31, narrowed from a loss of 970 billion yen the prior year.

Apple (AAPL) shares are up 1.3% in premarket trading as the tech giant is is reportedly closing in on a deal to use OpenAI’s technology on the iPhone, part of a broader push to bring AI features to its devices. The two sides have been finalizing terms for a pact to use ChatGPT features in Apple’s iOS 18, the next iPhone operating system, reported. Separate discussions by Apple with Alphabet’s (GOOGL) Google about licensing that company’s Gemini chatbot are continuing but haven’t led to an agreement, the report said. Meanwhile, OpenAI will hold an event Monday where it will announce improvements to its ChatGPT product.

Chinese e-commerce platform Temu is reportedly shifting business priorities beyond the U.S., with its slowing growth and TikTok’s troubles with Washington among catalysts for the pivot. Temu, owned by PDD Holdings (PDD), wants to limit risks and seek other sources of growth, according to , and is focusing on acquiring users in Europe and elsewhere. Because of that, the report said Temu now expects less than a third of its sales to come from the U.S. this year, compared with 60% last year.

Microsoft (MSFT) and Amazon (AMZN) are among a slew of companies investing billions of dollars in France as part of President Emmanuel Macron’s push to draw international investors. Microsoft said Monday that it is investing 4 billion euros ($4.31 billion) to build out AI, data-center and cloud infrastructure in France. Amazon said it would invest EUR1.2 billion to boost its AI presence and support the expansion of its logistics network to speed up deliveries. Microsoft shares are up less than 1% in premarket trading while Amazon is little changed.

Major investors such as Warren Buffett, Dan Loeb, and others will show how their equity positions changed from the beginning of the year to the end of March this week, with some trickling in today. Most large investors with assets under management (AUM) of $100 million or more are required to report their equity holdings each quarter via the Securities and Exchange Commission's (SEC) Form 13F, and the deadline for these filings for the March quarter is Wednesday. AI is once again a major trend to watch, as investors will keep an eye on changes to holdings. Berkshire Hathaway (BRK.A, BRK.B)  has already revealed that it trimmed its position in Apple (AAPL) and exited its position in Paramount Global (PARA) as it works to build up its cash reserves. 

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Tesla (TSLA) shares are likely to make their way onto watchlists Monday after the legacy EV maker launched a financing incentive on Friday evening for Model Y purchases in what appears to be the auto giant’s latest initiative to combat increasing competition and sluggish consumer demand.

According to the company’s website, it is offering a 0.99% annual percentage rate (APR) on qualifying Model Y purchases May 10th and May 31st. The incentive applies to 36, 48, 60 and 72-month financing terms, though the APR increases to 2.99% for 84-month financing. A week ago, the quoted rate for Model Y — Tesla’s best-selling vehicle — was 6.49% APR.

Discounted financing is a doubled-edged sword for automakers—on one hand it helps improve deliveries by stimulating demand, but at the same time automakers have to cover the cost of below-market interest rates.

Tesla’s latest financing initiative follows 18 months of select price reductions across its vehicle lineup in a bid to drive volumes to counter intense competition from Chinese automakers and waning consumer demand for EVs. In February, the company temporarily slashed the price of several Model Y vehicles by $1,000 in the U.S.

While price cuts helped the EV maker deliver 38% more cars last year compared to 2022, they have not had the same effect so far this year. In the first three months of 2024, the company delivered roughly 387,0000 units, down from around 423,000 vehicles in the same period a year earlier.

After forming a bear trap below the lower trendline of a descending channel in late April, Tesla shares staged an impressive recovery, with the price climbing to the upper portion of the pattern. However, the rally has lost traction in recent weeks, resulting in the price retracing back below the closely-watched 50-day moving average. If the stock can hold current levels, it raises the possibility that Tesla shares may be carving out an inverse head and shoulders bottoming pattern. 

Looking ahead, investors should monitor if the price can close above the formation’s neckline around $197, a move that would confirm the pattern and potentially mark the start of a new trend higher in the stock.

Tesla shares were up 0.3% to $168.90 in premarket trading at around 7:20 a.m. The stock has lost about one-third of its value this year.

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A high school teacher has been accused for allegedly raping a 16 year old student that attends a coaching academy where he teaches in Ilorin, Kwara State.

An online user recounted how the man had carried out the horrific act in the past but got away with it. A video of the culprit was also released, which shows him in custody of the Police.

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President Bola Tinubu has banned members of the Federal Executive Council, FEC, from purchasing petrol dependent vehicles.

The President has also directed the mandatory procurement of compressed-natural-gas-powered vehicles by all government ministries, departments, and agencies.

The Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale, disclosed this in a statement on Monday evening, May 13, 2024.

According to him, the directive is in line with Tinubu’s commitment to ensure energy security, drive utility, and cut high fuel costs.

He said the President’s directive is also in furtherance of Nigeria’s effort to transition to cleaner energy as CNG-enabled vehicles have been adjudged to produce lower emissions, even as they present a more affordable alternative for Nigerian energy consumers.

Addressing members of the Federal Executive Council (FEC) at the State House on Monday, President Tinubu affirmed that there is no turning back in the energy reforms initiated by his administration.

“This nation will not progress forward if we continue to dance on the same spot. We have the will to drive the implementation of CNG adoption across the country, and we must set the example as public officials in leading the way to that prosperous future that we are working to achieve for our people. It starts with us, and in seeing that we are serious, Nigerians will follow our lead,” the President stated.

“The President further directed the rejection of all memos brought by members of FEC seeking the purchase of traditional petrol-dependent vehicles, tasking the affected members of the council to go back and diligently seek value-driven procurements of CNG-compliant vehicles.

The President remains committed to effectively harnessing the nation’s gas potential, alleviating the burden of high transportation costs on the masses while enhancing the standard of living of all Nigerians,” the statement added.

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Shares in UK-based chip design giant Arm Holdings (ARM) will be in focus on Monday after reported Sunday that the company plans to develop artificial intelligence (AI) chips, aiming to launch its first prototype in early 2025.

According to the report, Arm—in which Japan’s SoftBank (SFTBY) owns a 90% stake—will establish a new AI chip unit and build a prototype by spring next year before turning to contract manufacturers to have the chips mass produced by fall 2025.

Arm will fund the majority of the initial development costs, expected to be billions of yen, with Softbank also contributing, the report said. Once up and running, the AI chip business could be spun off under SoftBank.

The Japanese financial giant has already commenced negotiations with Taiwan Semiconductor Manufacturing (TSM) and other chipmakers as it looks to sure up production capacity, reported.

Arm, which makes money by selling royalties on its chip designs, has continued its push into the lucrative AI datacenter market, where tech behemoths such as Microsoft (MSFT), Meta (META), Alphabet (GOOGL), and Amazon (AMZN) have announced plans to build their own in-house chips to power their AI computing requirements, helping to reduce their reliance on AI chip supplying giant Nvidia (NVDA).

Since going public in September last year, the company’s shares have more than doubled from their $51 initial public offering (IPO) price as investors place bets that the chip designer can capture a sizable slice of the AI infrastructure market. Precedence Research of Canada expects the AI chip market to grow from $30 billion this year to $200 billion by 2032.

The Arm share price has traded within a narrow rising wedge since mid April—a chart pattern technical analysts typically interpret as having a bearish bias because it indicates an easing of buying momentum. In the short-term, the price may continue to oscillate in the wedge until the downward sloping 50-day moving average catches up with the pattern’s top trendline before the stock makes its next significant move. 

Amid a move lower, investors should monitor the $79 level, an area where the price may find buyers near the February pre-breakout level. However, if the price climbs above the wedge, it’s worth keeping in mind that the stock could make another attempt at testing key overhead resistance near prior price action around $145.

Arm shares closed trading last week at $108.84, after gaining 5.1% during Friday's session.

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