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Why Carnival’s Stock Is Sinking Despite Record Demand

Why Carnival’s Stock Is Sinking Despite Record Demand

Carnival ( (CCL) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.

Carnival shares are sliding as big investors, including Capital World Investors and CenterBook Partners LP, dump the stock, raising worries that more institutions could follow. Analysts are also souring on the name, pointing to higher fuel prices that threaten to squeeze profits across the cruise sector.

Several analysts have trimmed their price targets, arguing that rising energy costs may cut into Carnival’s margins and earnings yield in the next fiscal report. Record booking demand and a recent corporate unification, while encouraging, are not enough to offset growing fears about profit pressure and sector-wide fuel-price volatility.

More about Carnival

YTD Price Performance: -8.21%

Average Trading Volume: 27,928,251

Technical Sentiment Signal: Buy

Current Market Cap: $38.36B

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