Why Cruise Stocks Are Taking on Water Today

Lou Whiteman, The Motley Fool
·2-min read
Why Cruise Stocks Are Taking on Water Today

Shares of Royal Caribbean Cruises (NYSE: RCL), Norwegian Cruise Line Holdings (NYSE: NCLH), and Carnival (NYSE: CCL) (NYSE: CUK) were each down about 5% on Monday morning after the cruise industry was the subject of a cautious write-up over the weekend. Cruise lines were hit hard in 2020 after the pandemic brought their businesses to a halt, but the stocks have been part of the so-called "reopening rally" this year as investors look forward to a return to normal as the vaccine rollout progresses. A report over the weekend in Barron's splashed some cold water on that optimism, warning that the cruise operators have cut into future investor returns due to the $40 billion in debt and equity the industry raised during the downturn.