What Happened?
Shares of cruise ship company Carnival (NYSE: CCL) fell 5.2% in the morning session after the major indices tumbled amid heightened geopolitical tensions in the Middle East following Israeli strikes on Iranian nuclear and military sites.
This development sent crude oil prices surging, as investors fear potential disruptions to global oil supply and a wider regional conflict. For companies tied to the travel sector, the fallout could mean a short-term drop in demand as travelers grow wary of regional instability.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Carnival? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Carnival’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 5.5% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Carnival is down 9.6% since the beginning of the year, and at $22.64 per share, it is trading 20.5% below its 52-week high of $28.49 from January 2025. Investors who bought $1,000 worth of Carnival’s shares 5 years ago would now be looking at an investment worth $1,164.
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