Cruise line stocks sell off after Norwegian extends suspension of trips through September
- Cruise line stocks tumbled on Wednesday after Norwegian Cruise Lines announced it would be extending its suspension of cruise trips through September 30.
- Previously, Norwegian announced it would suspend trips through June 30.
- The extension of Norwegian's suspension of cruise voyages has put pressure on cruise line stocks, with Norwegian falling 10%, and Carnival and Royal Caribbean falling 7% each.
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Norwegian Cruise Lines announced on Tuesday that it would be extending its suspension of cruise trips through September 30 due to the coronavirus pandemic, sending shares down as much as 10% in Wednesday morning trades.
The company previously announced a suspension of its trips through June 30. Norwegian said the suspension of its global cruise voyages would include all voyages embarking between August 1 and September 30.
Additionally, the company will be canceling select voyages through October, including Canada and New England sailings, due to travel and port restrictions.
The news sent shares of Norwegian Cruise down as much as 10% to $18.86. Carnival Cruise Lines fell as much as 6% to $19.15, and Royal Caribbean fell as much as 7% to $58.16. Year-to-date, shares of Norwegian Cruise Lines are down more than 64%.
Along with airline stocks, cruise lines have been a favorite trading vehicle for David Portnoy and his following of day traders as they bet on an expedited reopening of the economy.
But not everyone thinks this group of traders' foray into the stock market will end well. On Tuesday, billionaire investor Leon Cooperman warned on CNBC that the recent antics of Robinhood day traders is "stupid" and "will end in tears."
