- NYSE:CCL continued its surge on Monday on renewed optimism from investors.
- The travel industry has been resurrected after being devastated by COVID-19.
- Cruise Line companies continue to gain despite the CDC putting a red flag on would-be cruise-goers.
NYSE:CCL has been brought back to life after several biotech companies reported potential COVID-19 vaccines with an extremely high efficacy rate. On Monday, CCL surged a further 4.66% to close the trading session at $18.18, which represents a 30% gain over the last 14 days, since the vaccines were announced. Shares are still way down and remain nearly 65% off of its 52-week high price of $51.94, but renewed investor optimism could continue to raise this stock well into 2021 as the world finally sees a potential end to the coronavirus pandemic.
The travel industry, in general, has been one of the most beaten-down sectors of the economy ever since global travel was nearly shut down completely. Likewise to CCL, both of its chief rivals Royal Caribbean (NYSE:RCL) and Norwegian Cruise Line Holdings (NASDAQ:NCLH) also gained over 4% respectively to start the week. The COVID-19 vaccine news has uplifted several other travel-based sectors including the airlines, hotels, and travel booking sites.
NYSE:CCL stock price chart
It is not all sunshine and rainbows for Carnival though, as the CDC recently raised a red flag for potential cruise-goers as optimism about travel ramped up. Carnival also had to sell-off 18 of its ships this year to raise capital for costs, and management recently sold off $1.5 billion of its shares to raise further capital for the new year. So although Carnival is far from smooth sailing until confirmation of global vaccine doses can be distributed, which according to Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA), may not be until the end of 2021.
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