Why Is Everyone Talking About Carnival Stock?
Carnival Cruise Lines (NYSE: CCL) (NYSE: CUK) is one of the biggest losers of the COVID-19 pandemic. But instead of fading into oblivion or filing for bankruptcy, like other pandemic failures, it's become the talk of investors as it tries to hold on until the pandemic ends. Let's see why it's such a heated discussion.
Carnival is the largest cruise vacation company in the world, and revenue was growing before the pandemic, hitting $4.8 billion in sales in the fiscal first quarter, which covered the period ended Feb. 29. But cruises -- and sales -- came to a halt when lockdown orders were issued.
In the fiscal third quarter ended Aug. 31, Carnival posted a $2.9 billion loss. Its average cash burn rate was $770 million, and with some positive movement in the fourth quarter, it expects that to improve to $530 million.
Source Fool.com
