Please ensure Javascript is enabled for purposes of website accessibility

Why Carnival Stock Popped Again Today

By Rich Smith – Dec 22, 2021 at 7:00AM

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

Some reports indicate the omicron variant might not be nearly as bad as the delta strain.

What happened

Shares of cruise line operator Carnival (CCL -4.77%) jumped again in early Wednesday trading after positive news emerged on the risks posed by COVID-19's omicron variant.

As of 10:50 a.m. ET today, Carnival stock was up 2.2%.

Two couples on the deck of a cruise ship.

Image source: Getty Images.

So what

CNBC reported this morning that there are "glimmers of hope" surrounding omicron. Although the World Health Organization says that omicron infections are doubling every 1.5 to 3 days, and health experts believe that the variant is more transmissible than delta, CNBC also said, "Studies so far indicate that the damage [omicron] causes is likely to be at worst akin to previous variants, and possibly milder." In particular, one study out of Hong Kong suggests that "omicron infection in the lungs is significantly lower, indicating that it may have a less severe impact on those who get infected." 

Now what

It's important to note that CNBC says the Hong Kong study is "very preliminary." Also, even a weak virus that spreads quickly could result in an increase in the absolute number of severe COVID cases.  

All that being said, a study in South Africa suggests that omicron is much less severe than delta, with just 1.7% of the omicron cases doctors see in that country requiring hospitalization, versus 19% of delta cases. 

That's just the kind of good news cruise investors were waiting to hear, and it's why Carnival stock is going up today.

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

Premium Investing Services

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