Copyright Benzinga
Shares of Carnival Corp (NYSE:CCL) are trading lower Tuesday morning, caught in a downdraft affecting the broader cruise sector. The negative sentiment follows a disappointing quarterly report from competitor Norwegian Cruise Line Holdings. Here’s what investors need to know. CCL shares are retreating from recent levels. Get the latest updates here. What To Know: Norwegian Cruise Line shares are trading sharply lower after its third-quarter report showed significant sales weakness. The company posted third-quarter revenue of $2.5 billion, falling short of the $3.02 billion analyst consensus. The top-line miss suggests weaker holiday demand and pricing power, despite an increase in capacity. The news is dragging down Carnival stock as both companies operate in the same industry and face similar market conditions. Investors fear the factors hurting Norwegian, such as persistent inflation, geopolitical tensions and a potential slowdown in consumer spending on travel, will also negatively impact Carnival’s performance. This industry-wide concern is prompting a sell-off in Carnival shares ahead of its own report next month. Carnival is scheduled to release its next earnings report on Dec. 19, with Wall Street estimates projecting quarterly EPS of 24 cents on revenue of $6.37 billion. Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Carnival currently boasts a strong Momentum score of 82.08. CCL Price Action: Carnival shares were down 7.65% at $27.52 at the time of publication on Tuesday, according to Benzinga Pro data. Read Also: Rocket Lab Stock Slides As Investors Await Q3 Earnings How To Buy CCL Stock By now you're likely curious about how to participate in the market for Carnival – be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline. Image: Shutterstock
