It’s been a miserable week to own Carnival (NYSE:CCL) (NYSE:CUK) stock. Every single day, the stock has closed down from the previous day — and Friday looks to be no different, with Carnival shares shedding 4.2% through 2:45 p.m. EDT today.
So what’s eating Carnival investors this time? It may be lingering concerns about the company’s new policy of requiring passengers in Florida to prove vaccination or purchase travel insurance and pay for a negative COVID-19 test, and what effect the policy will have on demand.
But it’s also possible that investors aren’t entirely elated about the latest news out of Canada. Specifically, last night Reuters reported that Canada has decided to lift pandemic restrictions on cruise ship visits to its ports — but maybe not as quickly as Carnival investors had hoped they would.
Previously, Canada had banned cruise ships from its ports through February 2022. Last night, Transport Minister Omar Alghabra announced this ban would be lifted effective Nov. 1, so long as passengers and crew “fully comply with public health requirements.”
Granted, this news means Carnival still won’t be cruising to Canada for about four more months, and maybe tourism industry investors aren’t happy about that, seeing as the cruise industry is already opening up south of the Canadian border. But even so, four months is less than seven months, and if you ask me, Canada’s decision still qualifies as good news for Carnival and other cruise lines.
Even if investors aren’t treating it as such.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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