The ultimate goal of trading on the stock exchange is to make money on various financial transactions. Trading is a great option for those investors who want to receive lucrative gains in the equity market. As a rule, speculators choose shares of large companies. A well-thought strategy helps them earn decent money on fluctuations in the quotes.

Cruise operator Carnival Corporation is one of the biggest companies in the market, which accounts for about half of the global cruise line industry. So, its stock is a good choice for investors. Over the 50-year history of its existence, the corporation has experienced ups and downs. However, it remains among the leaders in its industry.

Top cruise operator

Carnival Corporation is a multinational cruise operator. This is the largest company in the world that organizes tourist cruise holidays. It was founded in 1972 in the US by businessman Ted Arison as Carnival Cruise Line. Its first cruise ship was Mardi Gras which ran aground on a sandbar off Miami Beach during the first cruise line.

In 1982, a new vessel entered service. In 1984, Carnival Cruise Line launched the first cruise industry advertising campaign on American television. Three years later, its shares were traded on the New York Stock Exchange.

The company was rapidly expanding. Aspiring to become a global leader in the industry, it started acquiring other companies. Over time, it merged with Holland America Line, Windstar Cruises, Cunard Line, Costa Cruises, Seabourn Cruise Line, and others. In 1993, Carnival Cruise Line changed its name to Carnival Corporation in order to distinguish the parent company from the subsidiary. The first vessel of the class, Carnival Fantasy, entered service in the 90s. With all eight vessels of the class, the company set a record for the number of vessels of the same class in operation.

As of November 2019, Carnival Corporation owned 103 cruise ships, whereas the number of employees amounted to 120,000. Notably, 100,000 of them were ship personnel. More than 11 million people used the company's services annually.

Carnival Corporation and coronavirus pandemic

The coronavirus outbreak delivered a severe blow to the company, as well as the entire cruise line industry. Carnival Corporation lost billions of dollars during the pandemic. It forced Carnival Corporation to suspend cruise tours for a while. Its business was almost paralyzed. For the first quarter of 2020, the cruise operator's losses rose to a whopping $781 million, while in the first quarter of 2019, the profit was $336 million.

In 2021, the company was set to normalize passenger traffic. In late September, Carnival Cruise Line envisioned the brand's entire fleet returning to service by the end of the year. It was also expected to resume guest cruise operations with 65% of its total fleet capacity.

Carnival Corporation's net loss for the 3rd quarter of 2021 amounted to $7 billion and for the same period in 2020 – $8 billion.

Carnival Corporation shares

Carnival Corporation completed its initial public offering in July 1987. The influx of capital allowed the company to begin expanding through acquisition. During its existence, it split shares twice in 1994 and 1998.

A stock split is usually carried out in order to make expensive stocks more accessible and attract more investors to improve trading liquidity.

At the end of January 2018, Carnival Corporation shares reached a record high of $72. By April last year, the company's shares fell below $10 due to the coronavirus pandemic. Nowadays, its stock is worth $18.5. However, it has not recovered yet to the pre-pandemic level.

In early February 2020, Carnival Corporation stock was estimated at $58.6. In mid–March 2020, its price totaled $9.3.

What affects Carnival Corporation shares:

  • The epidemiological situation and news about it. For example, on March 19, 2020, the company's shares jumped by 7.5% after the announcement that Carnival Corporation offered its cruise ships as temporary hospitals for non-COVID-19 patients. On November 26, 2021, its stock dropped by 11% amid the emergence of a new coronavirus strain - Omicron.
  • Prices for oil and petroleum products.
  • Natural disasters. For example, many Carnival Corporation cruise tours were canceled because of Hurricane Dorian in 2019.
  • The political situation in the world. For example, the company was affected by the US ban on travel to Cuba in 2019.
  • Currency exchange rates.
  • The company’s financial position

Carnival Corporation shares are mainly traded on the New York Stock Exchange (NYSE). The company's stock is included in the S&P 500 and FTSE 100 indices with the ticker CL.

How to earn on shares

There are two ways to get income from the company's shares. You can purchase its stock and receive dividends (the last payment in March 2020 was $0.5 per share). You can also earn on the fluctuation in the quotes through active trading by opening both short and long positions.

If you want to make money on CCL shares with InstaForex CFD broker, you should take three simple steps: open an account, replenish it, and open trades according to the prevailing trend.

Analysts believe that over the year, the average cost of Carnival Corporation shares will be $28. It means that shares are likely to grow by 54%. However, you should make the decision to buy, sell or hold after analyzing the current situation.

You can stay up-to-date with the latest developments in financial markets by visiting our Analysis Articles section on the InstaForex website.

Conclusion

In recent months, some cruise industry operators have revealed that a significant number of their ships will soon move to almost full capacity. Analysts contemplate that in 2022, the largest cruise companies, including Carnival Corporation, will get back on track, receiving high yields. Nevertheless, these bright forecasts are unlikely to come true if there are new coronavirus strains.

The company’s operation directly impacts the stock price. It means that in the future, investors will be able to earn on declines and rises in Carnival Corporation shares. If you want to make a profit on CFD trading with the company’s shares and other trading instruments, then go to the InstaForex website and register a trading account.