What the Smartest Investors Know About Carnival Stock
Cruise line Carnival (NYSE: CCL) has become a popular comeback story on Wall Street. COVID-19 did a lot of damage to tourism-focused companies like Carnival, which are just now getting their sea legs back under them. But an investment in the cruise operator gets more complicated as you peel back the layers of the onion.
Carnival could hit the high seas at full capacity over the next several years. Still, its complicated financial situation could lead to troubles and subpar returns for investors. Here is why you're better off staying off this cruise stock.
The pandemic brought the company to its knees. The last place you want to hide from an airborne virus is on a ship, isolated at sea among hundreds of strangers. Ships are also expensive to maintain and operate, and the travel restrictions resulted in billions of losses for Carnival, which was burning an average of $650 million of cash every month in the early phases of the pandemic.
Source Fool.com
