Seeing a rebound story in the works, the market has been flocking to  (NYSE: CCL). The cruise company neared bankruptcy during the pandemic, but the stock has since rallied hard and is now approaching a 52-week high. Still, the stock remains more than 80% off its pre-pandemic peak.

So, are investors sailing the high seas to stellar investment returns ahead, or is there an iceberg on the horizon? The reality is that Carnival's stock has some problems beneath the surface, so read on to find out why investors might want to sell or steer clear of this hot but troubled company altogether.

Carnival nearly went out of business when COVID-19 forced the company to shut down operations. It had to furiously raise funds to survive, including issuing new shares and borrowing a lot of money. The number of outstanding shares has increased by 66% over the past three years, and debt has grown by 41% to $35 billion.

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Source Fool.com