Why You Should Stay Away From Cruise Line Stocks
Let's face it, the cruise line business isn't going to be returning to anything near normal anytime soon. North American cruises have already been canceled through mid-September at the earliest, and given the pace of COVID-19 growth in Florida, where most of the industry is based, even that might be too soon to set sail.
Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line (NYSE: NCLH) all did a good job of raising money to make it through the pandemic early in their shutdowns. But that cash is going to be burned quickly, and even when operations are going again, there's less and less left for shareholders. Given the dilution and added debt companies have taken on, I don't think this is a business that's set up for long-term success for shareholders.
Image source: Getty Images.
Source Fool.com
