Why is carnival's stock dropping?
It's been a bad week for all cruise lines, but Carnival, in particular, has seen its shares drop. The requirement that Florida passengers purchase travel insurance has discouraged investors. The company just started U.S. departures earlier this month from Galveston, Texas, and Miami, Florida. Pent-up demand for cruise travel remains strong.
Why did cruise line stocks fall on Monday?
The value of cruise line stocks plunged on Monday as investors weighed multiple headwinds heading the industry's way. Not only are oil prices spiking, but there's also concern that Russia's invasion of Ukraine could sink consumer discretionary spending on things like cruises. Carnival Corporation's (NYSE: CCL) (NYSE: CUK) shares fell as much as 6.
What is driving the stock price down?
The other concern that might be driving the stock down is the company is still losing money. It recently said in its half-year report that it lost $1.4 billion in the first six months of 2021, compared to a $1.6 billion loss in the first six months of 2020.
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Why did CCL stock drop today?
CCL Stock Drops as the CDC Investigates a Covid-19 Outbreak on a Carnival Cruise. Today, the bloodbath in financial markets continues.
Is CCL stock a good buy?
Out of 12 analysts, 0 (0%) are recommending CCL as a Strong Buy, 2 (16.67%) are recommending CCL as a Buy, 8 (66.67%) are recommending CCL as a Hold, 0 (0%) are recommending CCL as a Sell, and 2 (16.67%) are recommending CCL as a Strong Sell. What is CCL's earnings growth forecast for 2022-2024?
Is CCL expected to go up?
The 16 analysts offering 12-month price forecasts for Carnival Corp have a median target of 21.43, with a high estimate of 38.00 and a low estimate of 15.00. The median estimate represents a +52.42% increase from the last price of 14.06.
Is CCL going out of business?
But at the same time, Carnival will remain the largest cruise line in the world. It isn't dead, it isn't going bankrupt, and no other cruise line is going to usurp its position in the industry. That's why it remains very difficult to bet against it, despite the ongoing pandemic.
Is Carnival Cruise stock a buy?
Although Carnival anticipates becoming profitable (on an adjusted EBITDA basis) in the second half of the year, it's clear 2022, like 2021, will be another year of transition for the hard-hit travel company. Investors who bought in around $30 per share last year overestimated the speed of Carnival's recovery.
What is the hottest stock to buy right now?
Most ActivesCompanyPrice% ChangeCCL Carnival Corp11.23-4.26%F Ford Motor Co12.80-3.65%BAC Bank of America Corp33.35-3.37%NCLH Norwegian Cruise Line Holdings Ltd13.34-3.05%6 more rows
What is the outlook for Carnival Cruise Lines?
But if you're expecting Carnival stock to reach pre-pandemic levels, you'll want to have a longer time horizon. However, on the other hand, analysts are forecasting revenue of $15.2 billion for 2022. And with a market capitalization of $18.6 billion, Carnival is trading for approximately 1.2 times forward sales.
What is the target price for CCL?
Stock Price TargetsHigh$38.00Median$21.00Low$13.00Average$21.49Current Price$11.73
Is Luv a buy?
Out of 12 analysts, 4 (33.33%) are recommending LUV as a Strong Buy, 2 (16.67%) are recommending LUV as a Buy, 5 (41.67%) are recommending LUV as a Hold, 0 (0%) are recommending LUV as a Sell, and 1 (8.33%) are recommending LUV as a Strong Sell.
Which cruise lines are in financial trouble?
Genting Hong Kong, which owns Asia-based Dream Cruises and Star Cruises as well as Crystal, has been struggling financially ever since the COVID-19 pandemic forced a worldwide shutdown to cruising in early 2020.
Does Carnival file Chapter 11?
The company is in a difficult situation. Despite the multiple steps Carnival has taken to mitigate the effects of Covid-19, it could still face bankruptcy if demand for its cruises does not return by the end of 2021. I don't believe there is a danger of the company filing for Chapter 11.
What happened
So what
For the second day in a row, Carnival ( CCL -1.11% ) ( CUK -1.49% ) stock is sinking. After falling 1.6% from Friday's close on Monday, shares of the cruise ship operator are down another 2.5% as of 11:11 a.m. EDT on Tuesday.
NYSE: CCL
On Monday, The Miami Herald reported that in an effort to keep its ships free of the novel coronavirus -- but also comply with a Florida law forbidding cruise companies from requiring that passengers show proof of vaccination against it -- Carnival has decided to demand that vacationers purchase "special COVID-19 travel insurance" if they want to board its ships..
Now what
In theory, Carnival, like its rival Royal Caribbean ( RCL -1.70% ), wants all passengers to be vaccinated because, according to the U.S. Centers for Disease Control, a cruise line that requires 95% of its passengers to be vaccinated can get a "conditional sailing certificate" without needing to run a "simulated sailing" beforehand.
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So why is that bad news for Carnival stock (and for Royal Caribbean, too, which has instituted a similar policy)? Simply because loading on fees and a requirement to purchase travel insurance makes the company's services more expensive, potentially deterring customers from sailing, and without adding anything to the revenue that Carnival will collect from the added expense..
