Please ensure Javascript is enabled for purposes of website accessibility

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

By Joe Tenebruso - Mar 3, 2021 at 1:23PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A faster-than-expected vaccine rollout bodes well for the cruise industry.

What happened

Cruise ship stocks rose on Wednesday after the White House said the U.S. would have enough coronavirus vaccines available to inoculate every adult in the country two months earlier than anticipated. 

As of 1:05 p.m. EST, shares of Royal Caribbean (RCL 4.12%), Carnival (CCL 5.54%) (CUK 5.32%), and Norwegian Cruise Line Holdings (NCLH 5.47%) were up 4%, 6%, and 8%, respectively. 

So what 

The White House's announcement came after the U.S. Food and Drug Administration granted emergency use authorization to Johnson & Johnson for its single-shot COVID-19 vaccine. J&J has partnered with fellow pharmaceutical giant Merck to ramp up the production of the drug. "What this means is that Americans are going to get shots in the arm faster, and we're very excited about the potential impact that this can have overall on the situation," J&J CEO Alex Gorsky said on Tuesday. 

The sun is shining as a cruise ship is sailing in the ocean.

Investors bid up the prices of cruise ship stocks on Wednesday. Image source: Getty Images.

An accelerated vaccine rollout could help to bring about the end of the pandemic sooner than many investors had expected. That would be a boon for the beleaguered cruise industry.

Now what

With most of their ships stuck at port, Carnival, Royal Caribbean, and Norwegian Cruise Line have all suffered brutal losses during the health crisis. A sharp decline in COVID-19 case counts could allow them to resume full-scale sailing operations. Such an influx of revenue would enable the major cruise line operators to begin to recover from their losses -- and help to ensure their survival.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Carnival Corporation Stock Quote
Carnival Corporation
CCL
$14.87 (5.54%) $0.78
Royal Caribbean Cruises Ltd. Stock Quote
Royal Caribbean Cruises Ltd.
RCL
$63.92 (4.12%) $2.53
Carnival Corporation Stock Quote
Carnival Corporation
CUK
$13.85 (5.32%) $0.70
Norwegian Cruise Line Holdings Ltd. Stock Quote
Norwegian Cruise Line Holdings Ltd.
NCLH
$16.97 (5.47%) $0.88

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.