Why Carnival Stock Will Probably Never Fully Recover
The coronavirus pandemic has crushed the travel industry, and cruise ship operators in particular have been among the hardest-hit companies from stay-at-home orders. Having had to shut down their operations, many cruise companies have needed to ask for assistance and are fighting for their financial survival.
Last week, Carnival (NYSE: CCL) successfully raised cash in the public markets, finding investors willing to pay $500 million in cold, hard cash for 62.5 million shares at $8 per share. With the stock having traded above $50 as recently as January, the secondary offering was a sobering reminder of just how far the cruise ship industry has fallen.
Yet Carnival's stock offering wasn't the most important news for the cruise ship giant's investors last week. It was the other ways that Carnival raised money -- this time only from institutional investors rather than ordinary shareholders -- that made it more likely than ever that Carnival's stock price will never fully recover.
Source Fool.com
