Can Carnival Stock Survive Another COVID-19 Market Crash?
Since COVID-19 began dominating market headlines in March, Carnival's (NYSE: CCL) stock price has fallen more than 80% alongside the rest of the cruise industry. The U.S. cruise industry voluntarily suspended operations through at least Oct. 31, extending beyond the latest Centers for Disease Control & Prevention (CDC) no-sail advisory, which goes through September. There is no guarantee the most recent extension will be the last.
To help mitigate the COVID-related costs, Carnival accessed both credit and debt markets. Saudi Arabia's sovereign wealth fund in April announced an 8.2% equity stake in the world's largest cruise operator. The average purchase price of these newly issued shares was $10.21, nearly 40% below where the stock price sits today.
Image source: Getty Images.
Source Fool.com
