EV - Is Carnival Stock Finally a Buy After a 67% Drop?
Although pandemic-related limitations have been lifted, Carnival Corporation stock ( NYSE:CCL ) continues to trade at a significant discount to its former highs.
Investors should think carefully before purchasing Carnival stock ( NYSE:CCL ) as the firm contends with debt and cuts.
How did Carnival’s saga begin?
Beginning in 2020, major COVID-19 outbreaks occurred on cruise liners . In March of that year, health organizations such as the Centers for Disease Control and Prevention issued no-sail orders to the industry. Carnival sold 19 ships, accessed financial markets, and used share dilution to generate the funds it needed to weather the crisis, with yearly revenue decreasing to as low as $1.9 billion in 2021 (from $20.8 billion in 2019).
Carnival made a combined net loss of $19.7 billion in 2020 and 2021 , increased its long-term debt from $9.7 billion to $28.5 billion, and increased its share outstanding from 690 million to 1.12 billion (a 62% increase). Even when operations stabilize, the corporation will struggle to handle this baggage.
Carnival Stock: The Third-quarter Profits Were Underwhelming.
The third-quarter results of Carnival were a mixed bag. Revenue increased by 688% yearly to $4.3 billion due to simple comparisons to the prior year. The corporation also reduced its operating deficit from $2 billion ...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Subscribe to us on Youtube
PressReach Disclaimer .