Why Carnival, Royal Caribbean, and Norwegian Cruise Line Stocks Soared Today

What happened

Cruise ship stocks surged on Wednesday after investors received exciting news about an experimental COVID-19 vaccine.

By the close of trading, shares of Carnival (NYSE: CCL) (NYSE: CUK), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) were up 16%, 21%, and 20%, respectively.

So what

Surging COVID-19 case counts have weighed heavily on the cruise industry. Royal Caribbean, Carnival, and Norwegian have had their ships stuck at port for months, following a string of coronavirus-related outbreaks aboard their vessels. With little revenue coming in, they've been bleeding cash and forced to incur massive amounts of debt to stay afloat.

Two glasses of champagne on the railing of a cruise ship, with a view of the ocean.

Cruise ship investors finally received some welcome news. Image source: Getty Images.

However, late on Tuesday, Moderna announced promising vaccine trial news. The New England Journal of Medicine published an interim analysis of Moderna's phase 1 trial of its experimental coronavirus vaccine. Neutralizing antibodies produced by the vaccine were found in all of the studies' participants. Scientists believe these antibodies could help prevent COVID-19. The vaccine candidate was also found to be generally safe and well-tolerated. 

Now what

Moderna's news gives investors hope that a vaccine or treatment for COVID-19 could be available sooner than many people predicted. That would be a boon for the beleaguered cruise industry, which is desperate to resume sailing operations. If Carnival, Royal Caribbean, and Norwegian can get their ships back at sea sooner than expected, their stocks could continue to trend higher.

10 stocks we like better than Carnival
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Carnival wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of June 2, 2020


Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Carnival. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More