Carnival Stock: Blood in the Water for Royal Caribbean and Disney

Updated

Waters remain choppy for Carnival .

At a time when many consumer stocks are trading near their all-time highs, Carnival stock is trading closer to its 52-week low.

The world's leading cruise line operator has had some unfortunate mishaps on sailings at its Costa and namesake lines, and the market's penalizing Carnival for the setbacks. Analysts have been scaling back their projections, fearing that potential passengers will steer clear of the Carnival brand for their next cruise booking.


This is a dinner bell for Carnival's smaller rivals. Royal Caribbean is introducing its latest vessel -- Quantum of the Seas -- this week. Online chatter claims that Disney is about to expand its growing fleet by 50% when it announces two new ships later this month.

Cruising isn't diminishing in popularity. In this video, Rick argues that Carnival stock itself may be the one that's diminishing.

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The article Carnival Stock: Blood in the Water for Royal Caribbean and Disney originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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