Why Cruise Line Stocks Just Got Destroyed
Well, so much for that trend I was talking about! After four straight sessions of gains, cruise line stocks are sinking today. The broad move lower follows the announcement from industry bellwether Carnival Corporation (NYSE: CCL) that it needs to raise $1 billion in new cash through a stock offering.
As of 11:30 a.m. ET, shares of Norwegian Cruise Line Holdings (NYSE: NCLH) and Royal Caribbean (NYSE: RCL) were down 8.5% and 9.3%, respectively. And Carnival stock itself -- the company that caused the plunge -- led the pack lower with an 11.9% loss.
So how bad is this news, exactly? Let's set the stage.
Source Fool.com
