Why Norwegian Cruise Line Stock Slumped Today

By The Motley Fool3 days ago

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What happened

Wednesday was a good day for cruise line stocks, with shares of Royal Caribbean (NYSE: RCL), Carnival Corporation (NYSE: CCL) (NYSE: CUK), and Norwegian Cruise Line Holdings (NYSE: NCLH) all closing higher despite bellwether stock Carnival reporting a big $2 billion generally accepted accounting principles (GAAP) loss for its fiscal first quarter 2021.

Today is a bit different, with all three of the major cruise line stocks moving lower, led by Norwegian Cruise, which dropped more than 6% in the morning and remains down 2.4% as of 1:30 p.m. EDT.

Image source: Getty Images.

So what

Clearly, we're dealing with a good news/bad news situation here. On the good news front, Carnival CEO Arnold Donald noted that “booking volumes are accelerating“ and reiterated his hope that the cruise industry will be able to “resume operations this summer.“ Furthermore, Bloomberg noted that the U.S. Centers for Disease Control and Prevention seems to be acceding to industry pressure to permit such a reopening and is now contemplating permitting cruising to resume “hopefully, by mid-summer with restricted revenue sailings.“

On the bad news front, though, yesterday Royal Caribbean and Carnival -- and Disney (NYSE: DIS), too -- all joined Norwegian Cruise in suspending most of their scheduled U.S. cruises through June.

Now what

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