Carnival Corporation (NYSE: CCL) is getting hammered this morning after one of its Costa cruise lines grounded and partially capsized, resulting in the loss of life and resulting in million and millions of dollars of damages to Carnival and its earnings. Royal Caribbean Cruises Ltd. (NYSE: RCL) is being negatively impacted as well and it had nothing to do with this.
The company has put the quarterly hit at about $0.11 to $0.12 against its earnings per share. J.P. Morgan downgraded the stock as a result of the accident’s impact. Carnival’s Costa brand is countered by the other brands of Cunard, P&O, AIDA, and Ibero internationally and the Carnival brand known so well throughout North America.
What is interesting here is that by seeing a drop of 16%, it is analogous to losing one-sixth of the vale when this is about 1% of its counted ships. It sounds like too much of a drop on the surface, but this comes at a time when the European business is rocky and at a time when promotions are high. Things were already tough, but this made a declining situation very bad.
Carnival shares fell more than 16% on Monday in London trading, but shares are up less than 1% in London trading today. In New York, Carnival Corporation (NYSE: CCL) shares are trading down 16.3% at $28.74 and the 52-week trading range is $28.52 to $48.13. Its market value before this accident was over $26.6 billion.
Royal Caribbean Cruises Ltd. (NYSE: RCL) is down 7.5% at $26.59 and its 52-week range is $18.70 to $49.99. Its market value was about $6.25 billion before the trading of this morning.
JON C. OGG
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.