Cruise-line stocks have been taking on water since Covid-19 hit, but lately investors have really abandoned ship. Hovering over $6 a share, Carnival stock hasn’t been this cheap since Boyz II Men, TLC and Michael Jackson ruled the radio—that is three decades ago for anyone not old enough to remember. Shares of Carnival, Royal Caribbean Group and Norwegian Cruise Line Holdings are down an average of 23% over the past month, with Carnival shares falling nearly 36% over that period.
The cruise industry has been one of the hardest hit throughout the pandemic. Yet now, regulators are allowing more ships in the water, capacity is up, and mask and vaccine restrictions are lifting. So why are investors bailing?