What happened
Shares of cruise line stock Carnival (CCL 3.71%) fell as much as 3% in early trading on Wednesday as the Centers for Disease Control and Prevention (CDC) began monitoring more ships. The drop didn't last long, though, and shares were down just 0.5% at 1:30 p.m. ET today.
So what
The CDC said on Tuesday that it's investigating or observing at least 86 cruise ships as the omicron variant surges around the world. Ships are investigated if at least 0.1% of passengers test positive for COVID-19, which would be five passengers on a 5,000-passenger ship.
Image source: Getty Images.
Few industries have been hurt by the pandemic as much as the cruise industry, so any shutdowns or reductions in service would be bad news. But the CDC's reduction in quarantine guidance and lack of lockdowns already would indicate that the cruise industry will push through this current challenge. That's likely why the stock recovered after early reports were processed.
Now what
The continued threat of omicron outbreaks is worth keeping an eye on, but doesn't seem to be a huge risk to the cruise industry today. Business is getting back to normal, and more ships are returning to the water as well. Long term, this business is recovering, and while I don't think it's a great investment opportunity, I see no reason to panic-sell cruise line stocks today.
