3 Reasons Carnival Stock Will Sink

Trading under $14 at Thursday's close, Carnival (NYSE: CCL) is well below its 52-week high of $51.94. Investors looking at that low price might be tempted to buy the stock to bet on a rebound in the cruise industry when the pandemic subsides. But that would be a mistake.

Carnival's stock is cheap for a reason: It offers astronomical risk for limited potential reward.

Evidence from Europe suggests it isn't safe to reopen the cruise industry at this stage in the pandemic. And Carnival has additional, company-specific challenges because of its tarnished brand and deteriorating balance sheet. Let's find out a bit more about why this stock is a bad bet for investors.

Source Fool.com