Will Cruise Ship Stocks Bounce Back?

By Anna Duncan

The cruise industry has been absolutely decimated by the coronavirus pandemic. The entire industry depends on people gathering and travelling in close proximity, something which is extremely risky in the current climate. Companies like Carnival Corporation and Royal Caribbean Cruises have had to suspend all operations, including cruises, private yacht charters and even river cruises, and their stocks have seen prices tumble.

The good news is that the cruise industry has been resilient in the past. In fact, it has bounced back from some of the worst disasters in recent memory. The Deepwater Horizon oil spill of 2010 saw a dramatic drop in share prices for Carnival Corporation, but within two years their shares had recovered to pre-spill levels.

The same could be said for the Costa Concordia tragedy of 2012, when a cruise ship belonging to Carnival Corporation capsized off the coast of Italy. Despite this devastating event, Carnival’s stock prices had recovered within two years.

Will Cruise Ship Stocks Bounce Back?

The answer to this question is yes – it’s possible that cruise ship stocks will bounce back after being hit by the coronavirus pandemic. The industry has demonstrated resilience in the past when faced with disasters such as oil spills and shipwrecks. However, there is no guarantee that history will repeat itself and it could be several years before we start to see a recovery in stock prices.

Conclusion:

It is possible that cruise ship stocks will bounce back after being hit hard by the coronavirus pandemic. However, there is no guarantee that history will repeat itself and it may take several years before we start to see a recovery in stock prices.