Philip Morris Q4 forecasts disappoint, shares indicate lower
Philip Morris International shares indicated lower after the Marlboro maker’s outlook disappointed.
IGTV's Angeline Ong looks at why it’s not just costs, but also demand for the tobacco giant’s smoking alternatives that have unnerved investors.
(AI Video Summary)
Philip Morris Q1 profits expected lower
Philip Morris, a company that makes tobacco and other products, recently announced that its profits for the first quarter are expected to be lower than expected because costs are going up. One of the reasons for this is that the sales of their heated tobacco products have been disappointing. Last quarter, the company also faced challenges because they had to spend more money on marketing, dealing with tobacco use, and administrative expenses.
Stocks showing volatility
On the IG platform, where people can trade stocks, the stock for Philip Morris has been going up and down a lot, which suggests there could be even more ups and downs in the future. Some people describe the company's performance as a "crazy rollercoaster ride," and experts think the stock might continue to go up and down a lot.
One reason for this is that three different lines on the stock chart are getting closer together, which could mean that there will be more people trading their stock.
Overall, Philip Morris is having financial problems in the first quarter because they are making less money than expected and their heated tobacco products aren't doing well. They are also spending more money on marketing, dealing with tobacco use, and administrative expenses. People who have invested in the company's stock should be ready for the price to go up and down a lot, because it has been doing that recently and there are signs it will continue to do so.
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