What Is Going Wrong With Carnival Stock?
With its shares down 33% year to date, Carnival Corporation (NYSE: CCL) isn't enjoying the post-COVID-19 bull run you might have expected. While the return of cruising has led to a boom in sales, it will take years for the company to shed its mountain of debt. Rising interest rates and a possible recession could make the situation significantly worse. Let's dig deeper.
The cruise industry was hit incredibly hard by the coronavirus pandemic; fast-spreading viruses and tightly packed ships don't mix well. And in 2020, the U.S. Centers for Disease Control and Prevention imposed a no-sail order on the industry, which it replaced with a now-voluntary conditional sail order in 2021 and early 2022 designed to ensure a safer return to normal operations.
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Source Fool.com
