Why Cruise Line Stocks Plunged Again Today
The terrible week for cruise line stocks continued on Thursday. Not only is the broader market's decline dragging down their share prices, but there are also fears that the companies are seeing pricing pressure for tickets.
Carnival (NYSE: CCL) fell by as much as 8.7% in early trading, while Royal Caribbean Cruises (NYSE: RCL) dipped as much as 8.4%, and Norwegian Cruise Line Holdings (NYSE: NCLH) dropped 9.2%. As of 1:30 p.m. ET, they were down 3.2%, 4.6%, and 5.2% respectively.
On Wednesday, Morgan Stanley analyst Jamie Rollo said in a report that he was worried that cruise line companies could ultimately face insolvency if their business conditions don't improve soon. And on Thursday, Citi leisure and travel sector analyst James Hardiman said during an interview on Yahoo! Finance Live that cruise companies are facing "some pushback on pricing," especially as ships get closer to operating at full capacity.
Source Fool.com
