Mauriello

Carnival Stock Analysis with Technical Analysis

NYSE:CCL   Carnival Corporation
Based on Technical Analysis the best option would be to hold for now, before going long.
NYSE:CCL
Fundamental Analysis
Cruise ship stocks gave back some of their recent gains on Thursday, as surging COVID-19 case counts threaten to delay the beleaguered industry's recovery. By the close of trading, shares of Carnival (NYSE:CCL) (NYSE:CUK), Royal Caribbean (NYSE:RCL), and Norwegian Cruise Line Holdings (NASDAQ:NCLH) were down 7.8%, 3.9%, and 3.4%, respectively.

Cruise ship stocks surged on Monday after Pfizer and BioNTech said their experimental coronavirus vaccine could be more than 90% effective at preventing COVID-19. A safe and highly effective vaccine would be a boon for cruise ship operators, who have suffered billions in losses with their ships stuck at port due to coronavirus-related sailing restrictions.

However, even if Pfizer and BioNTech receive regulatory approval, their vaccine may not be widely available until well into 2021. In the meantime, Carnival , Royal Caribbean, and Norwegian Cruise Line are burning through nearly $1 billion in cash per month in aggregate.

With COVID-19 case counts soaring in the U.S. and many international markets, health officials could choose to extend sailing restrictions into 2021. Royal Caribbean, Carnival , and Norwegian Cruise Line Holdings have all raised cash to survive such a scenario, but each month that goes by eats into their cash cushions, thereby increasing the risk for investors.

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