Why Norwegian Cruise, Carnival Corporation, and Royal Caribbean Stocks Crashed This Morning
On Monday, reports of an incredibly effective new coronavirus vaccine from Pfizer helped push cruise stocks out of port. By the time trading was done for the day, shares of Norwegian Cruise Line Holdings (NYSE: NCLH) stock were up nearly 27%, Royal Caribbean (NYSE: RCL) had gained nearly 29%, and Carnival Corporation (NYSE: CCL) had climbed more than 39% as investors bet that cruising will soon resume.
Today, however, cruise stocks are giving up those gains. A miserable earnings report from Norwegian Cruise Line, followed by an announcement that Carnival is cashing in on yesterday's stock surge with a $1.5 billion share offering, sent both stocks tumbling -- forming a whirlpool effect and sucking Royal Caribbean down alongside 'em. As of 10:40 a.m. EST, Carnival stock is down 11.5%, Norwegian 8.7%, and -- through no particular fault of its own -- Royal Caribbean is sinking 4.8%.
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