Why Carnival, Immunomedics, and Fitbit Slumped Today
Wall Street had another solid day on Friday, and major benchmarks climbed to record highs. Signs of stability for the U.S. led market participants to hope that growth would remain strong enough to keep company fundamentals healthy while being weak enough to deter the Federal Reserve from making further interest rate increases in the near future. Nevertheless, concerns about North Korea and the potential for another hurricane to hit the U.S. mainland as early as next week kept gains in check. Moreover, some companies had bad news that prevented them from participating in the rally, and Carnival (NYSE: CCL), Immunomedics (NASDAQ: IMMU), and Fitbit (NYSE: FIT) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Carnival dropped 4% as investors tried to assess the potential impact of Hurricanes Harvey and Irma on the cruise ship operator's long-term business. On one hand, some analysts believe that the combination of catastrophic weather events and geopolitical tensions could lead customers to avoid the high seas. Yet such calls aren't new to the industry, and Carnival and its peers have historically been able to overcome such concerns through a combination of attractive pricing and unparalleled amenities. Even if Carnival suffers a short-term hit from the two recent hurricanes, it's still in good position to take advantage of demographic trends favoring the industry even as cruise operators ramp up capacity.
Image source: Carnival.
Source: Fool.com
