Why Carnival Shares Fell 10.8% in June
Shares of the world's largest cruise operator, Carnival (NYSE: CCL)(NYSE: CUK), fell 10.8% in June, according to data from S&P Global Market Intelligence. The stock declined after a strong performance year to date in anticipation of an economic reopening and travel boom. But shares fell in June as the delta COVID-19 variant delayed some cruise restarts in Europe. In addition, the company announced a share-sale program toward the end of the month, causing investors to fear more dilution.
Carnival shares dipped as two summer cruises in Europe were delayed. Image source: Getty Images.
Carnival shared a second-quarter update during the month, which could have actually been interpreted as a positive. At the end of the quarter, the company had $9.3 billion in cash, which management said was enough to return to full cruise operations by 2022. Currently, about 35% of Carnival's fleet is either back cruising, or set to resume by the end of the third quarter, with another 20% set to restart before the end of the fourth quarter.
Source Fool.com
