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CCL: Strong Earnings but Headwinds Loom

CCL: Strong Earnings but Headwinds Loom

Schwab Network · Schwab Network

June 23, 20258m 8s

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Show Notes

Carnival (CCL) shares are up more than 40% over the last year, but have pulled back from recent highs. Despite this, the company's record earnings and strong forward-looking booking mentions are positives. However, Likefolio's Megan Brantley notes that CCL's high debt-to-equity ratio and exposure to budget-conscious consumers could be headwinds. Additionally, changes to its loyalty program have sparked a consumer backlash, which could impact sentiment and demand. With the job market showing signs of potential weakness, Brantley says CCL's stock may be more vulnerable to a slowdown than its peers, such as Royal Caribbean (RCL) and Norwegian (NCLH).


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