Why Carnival, Royal Caribbean, and Norwegian Cruise Line Stocks Fell Today

Why Carnival, Royal Caribbean, and Norwegian Cruise Line Stocks Fell Today
A dangerous new strain of the coronavirus is spreading rapidly.
Joe Tenebruso Dec 21, 2020 https://www.fool.com/investing/2020/12/21/why-carnival-royal-caribbean-a...

What happened

Cruise ship stocks sank on Monday, as a highly contagious new coronavirus strain is forcing governments to impose new lockdowns. As of 11:30 a.m. EST, shares of Carnival (NYSE:CCL) (NYSE:CUK), Norwegian Cruise Line Holdings (NYSE:NCLH), and Royal Caribbean (NYSE:RCL) were down 4.9%, 4.5%, and 2.9%, respectively.

So what

The new strain emerged in the U.K. in September. It's reportedly spreading 70% faster than previous versions of the virus. Over the weekend, U.K. officials enacted lockdown measures in London and much of the country's southeastern regions to slow the spread.

The news overshadowed positive developments on the COVID-19 vaccine front. After receiving Emergency Use Authorization from the U.S. Food and Drug Administration (FDA) and other health regulators, Pfizer and Moderna have begun distributing their vaccines in the U.S. and internationally.
Now what

Investors have begun looking ahead to an eventual end to the coronavirus pandemic. COVID-19 has taken a huge toll on the cruise ship industry in 2020. Carnival, Royal Caribbean, and Norwegian Cruise Line Holdings have been forced to keep their ships docked at port due to coronavirus-related sailing restrictions for much of the year. With little revenue coming in, they've suffered brutal losses.

Pfizer's and Moderna's vaccines could help the industry begin to recover as sailing restrictions are lifted and more people become comfortable taking cruise vacations once again. But as the recent coronavirus outbreak in the U.K. shows, it's unlikely to be smooth sailing for cruise companies until then.

Should you invest $1,000 in Carnival Corporation right now?

Before you consider Carnival Corporation, you'll want to hear this.

Investing legend and Motley Fool Co-founder Tom Gardner just revealed what he believes are the 10 best stocks for investors to buy right now... and Carnival Corporation wasn't one of them.

The online investing service he runs, Motley Fool Everlasting Stocks, has beaten the stock market by over 3X.* And right now, he thinks there are 10 stocks that are better buys.