Carnival Cruise Stock Soars! Why CCL is Going Up So Much!
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Today we talk about carnival cruise lines stock! The stock made a huge move today. I want to share with you the 3 reason CCL stock went up so much today and if Carnival cruise stock will continue to go up. Enjoy!
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Well knows it was just a short 72 hours ago on this channel I was putting out a video called is CCL stock a buy at $8. I said, Let’s talk some Carnival Cruise Line stock. And over the course of that video, we went into Carnival Cruise Line.
If it was worth buying, I kind of gave you my opinion on Carnival Cruise Line at $8. And kind of like if it was worth the risk for some folks out there and things like that. And here we are today just a few days later, right? And Carnival Cruise Lines trading at $10 plus a share it’s made a big upward move.
Like that’s a gargantuan upward move in literally just a few days like that’s incredible right and keep in mind two of those days was the weekend when the stock market isn’t even open but the stocks moving huge dates up $2.24 a share up over 26% that is a massive move for this stock.
So I want to go ahead and talk about Carnival Cruise Line. Why is it moving up so much here today? There are three reasons why the stock is moving huge today and we’re going to talk about will this stock continue to go up so I hope you guys enjoyed today’s video as always smash the thumbs up button if you’re looking forward today’s video.
Also smash the thumbs up button if you’re somebody that’s bought Carnival Cruise Line somewhat recently, or you actually had legit thoughts about possibly buying the stock smash that thumbs up button. If you’re in any of those two groups.
I would love to see how many you guys are are interested in a stock which this seems like there’s a lot of interest in the stock very recently as it’s dropped down at $8 a share 191,000 views in a video it’s been out for three days or four days on my channel.
That’s a lot of views. So there’s a lot of people that are watching CCL stock right now, I’ve had serious thoughts about buying it or you know, I have actually bought this stock. Okay, so massive move the stocks here today up over 26%. And what’s crazy about this is if you look at the three month chart, as we’re looking at right now, it doesn’t you don’t even see this this isn’t even like a blip on the chart.
Like literally a three month chart is down so massively, that even with a ridiculous move here they have over 26% like the stock, it doesn’t even seem like it matters because the stock has fallen basically from $50 in the past three months. Okay, that is absolutely incredible.
Even if we pull up a one month chart, even on a one month chart, it is ugly, it is hardly a blip seen on the radar, because the stock was 24 bucks a share one month ago. That is incredible. It is absolutely incredible how far how far the stock has fallen in such a short amount of time.
That’s well over 60% downward move for the stock in the past one month. That’s incredible for Carnival Cruise Line for CCL stock, you know, other than the Roni situation, there’s pretty much nothing that could have pushed this stock down to those levels. That is absolutely incredible.
Okay, absolutely incredible. And once again, we all know why this is it’s the Roni situation they basically you have to stop doing cruises. And so their business went from being a great business a business that produced one to $2 billion a month in revenue in a business that made 150 to $300 million on net income every single month.
Those numbers went from that to zero overnight. And when that happens to your business model, you’re going to see some ridiculous stock price moves as we’ve seen over the past three months with the stock in the past one month going from 24 to 10 bucks here today.
Okay, so the question really is why is CCL stock up so huge today? And will it continue to go higher? Okay, so let’s take this first one obviously Why is CCL up? So huge thing. So there are three reasons why the stock is up massively today. three reasons. Okay.
Reason number one of these three is the fact that the markets are up huge. The markets are having a great day to day. The Dow Jones Industrial Average is up 6%. Today, the s&p 500 is up nearly 6% and the NASDAQ’s up about 6% as well. When the markets are flying high like that.
It’s gonna help out a stock like Carnival Cruise Line in a massive, massive way. We’re talking about very beaten down stock and a stock that that you know is probably going to outperform to the upside in any type of huge market bounce back because the stocks been devastate that stock price for CCI has been devastated as we already spoke about.
And we can see the proof of this. The volume it’s the highest and stock market pretty much say it’s incredible. I mean, literally if you just kind of sort by volume, CCI, this isn’t even the full trading day yet right CCL volume 150 million shares, that’s incredible.
The amount of shares being traded back and forth and CCL stock is ridiculous. I mean absolutely ridiculous, literally volume of about 150 million today. That’s incredible. that’s by far and away. The next closest thing is the USO, which is the United States oil fund which a lot of new traders are getting in and out of right now trying to make moves to kind of navigate this whole oil situation I mean that is incredible, right?
We look at the next closest stock on this chart and it’s Delta Airlines Delta Airlines half the volume literally half the volume of Carnival Cruise Line that just shows you how volatile a stock like Carnival Cruise Line is. absolutely incredible.
Now it’s not just Carnival Cruise Line Royal Caribbean one of their main competitors also in their stocks moving huge a ton of volume on that stock up 19% Royal Caribbean day Norwegian Cruise Lines making a big upward move a lot of volume for Norwegian Cruise Lines today almost an 18% move upward for Norwegian Cruise Line stay so both the competitors of Carnival are also making huge moves today and so volume incredible fish stock when you have a great day like we have today.
It’s gonna usually push up a stock big time like Carnival Cruise Line okay, but this keep in mind it’s not just enough to push a stock up 20 plus percent without some more major news and there’s two more things okay. Number two reason the stock is up.
Huge thing is a Saudi fund takes a minority stake in carnival. Okay, the Saudi Arabian fun takes a minority stake in carnival. This is big. Okay. Saudi Arabia’s public investment fund has taken an 8.2% stake. It’s pretty dang big stake in Carnival Corporation.
According to a Monday financial filing from the cruise giant. Okay, well, basically, there has to be filings done. If If a fund or something takes this big of an investment, and 8.2% that’s a pretty big stake as a minority stake. But 8.2% they own 8.2% of the entire company.
That’s how many shares they bought. Okay. And when it comes to Saudi Arabia, and these public investment funds, stocks move huge when these guys sell or when they buy shares. It’s just the way it is. Okay. If you if if you want to remember the most famous tweet in the history of the stock market, right, it was when Ilan musk sent that 420 funding secured tweet when he was talking about a couple years ago about taking Tesla, you know, private for $420 a share. He was talking about that right?
Any sound that tweets the most famous tweeting literally in stock market history. And why was that? Well, because Saudi Arabia, the Saudi Arabian sovereign wealth fund was investing in Tesla and Tesla at that time. And from my understanding, there were some talks between Ilan musk and the Saudi Arabian Investment Fund, then maybe they would be interested in possibly taking the company private.
And we know back then, obviously, Ilan musk had a kind of hatred for the public markets felt like his stock wasn’t being respected and a lot of different things like that. Right. But at the core of it, it was Saudi Arabia in their investment in Tesla, in their their discussions with Ilan musk that got you know, so many people really exciting, including Ilan musk into possibly taking the company private.
And so needless to say, when Saudi Arabia gets involved in some of these things, like it just creates a lot of excitement for whatever reason, I think a lot of it has to do with a lot of these funds are very well capitalized, they have a lot of money.
And so people kind of look at and they’re like, you know, these Saudi Arabian wealth funds, they can almost kind of put a floor under stock. And if they continue to buy in, and they continue to buy in and buy in, buy in, guess where the shares are gonna like the go up and up and up, okay?
Because that just creates a huge demand out there in the market in general. So a lot of people when they hear Saudi Arabia invest in this stock, they buy a 5% stake and 8% stake, a lot of people get really excited. And the reason why Tesla stock was up that much for some of you guys that, you know, don’t remember why Tesla stock was up so much that day.
The Elan musk sent that 420 tweet was because it came out that Saudi Arabia had invested a significant stake in Tesla. Okay, so it’s just the way it is. Okay, the Saudis have a lot of money. And it’s funny, because right now, they’re kind of, you know, in the eye of the storm when it comes to oil prices.
We know Saudi Arabia, had these wealth funds, you know, sovereign wealth funds, investment funds in general in Saudi Arabia, how do they make so much money? It is from oil, and we’ve seen what has happened to the price of oil. I mean, it has gone down the worst ever, the worst ever.
I mean, that decline was substantial over the past few months. Part of it was because, you know, Russia and the Saudis couldn’t agree on oil prices. The other part of it is the fact that right now, you know, the world economies are shut down because of all these obviously the Roni situation and we all know that right?
And so oil has just fallen through the floor. And so Saudis, the Saudis, they’re not making as much money. It’s just bottom line, Saudi Arabia, their profits go down massively. Now, even at 20 something dollars a barrel. The Saudis Believe it or not, can still make profits from that oil.
But it’s a very small amount, I can tell you it’s a very small amount, especially compared to when oil is trading at 50 6070 $80 a barrel. It’s a massive, massive difference. So the Saudi Arabian profits are just down massively. And so sometimes they look for other investment opportunities.
And obviously they see something in Carnival Cruise Line. You know, for that fun to buy. Eat. Point 2% stake in something like Carnival Cruise Line, and just for future reference, you know, for all you guys that are involved in the stock market, and then actually, you know.
Take investing serious and actually, you know, stock picking things like that you ever think about the two things that can move a stock huge, there are really only two things for the most part in terms of like, you know, people or organizations that usually move a stock huge one is Warren Buffett, if Warren Buffett comes down, says he bought your stock, you know, usually a pretty dang bullish sign.
Okay, that’s pretty dang exciting. And usually that stock moves up huge. There’s there is the Saudis when the Saudis come out, and it’s disclosed or they publicly disclose that they bought into a stock, it usually moves that stock huge. And so like, I’ve just seen it throughout time and time again, like when Saudis come out and they invest in something stock moves up huge when Warren Buffett does it, stock moves up huge.
That’s just I don’t know, it’s just those those to hold a lot of weight. Okay, so those are the first two reasons why the stock is up huge. Reason number three, why my Carnival Cruise Line is having a great day today, let’s talk to make a massive move up is what we call new buyers or buyers.
Okay, so remember, last week on Wednesday, Carnival Cruise Line raised a ton of money, we’re talking about $6 billion. Okay to basically fund their business through this whole Roney shutdown situation that’s going on. And so what that ended up doing is a lot of folks said.
Okay, now Carnival Cruise Line is in a good capital position that they should likely be able to make it through all this short term drama with the Roni situation taking their business, their revenues to zero here in the short term. So what you had to happen is basically a lot of new buyers, after that happened, they looked at this stock, they’re like.
Okay, this is a seven $8 stock, you know, it’s trading in the sevens or eights on, you know, if you go back on Thursday and Friday, right, and they’re thinking to themselves, okay, stocks in the seventh or eighth, maybe it’s worth buying the stock.
Now the stock has been beaten down so much, they have, you know, 6 billion plus dollars around now, to make it through the short term Bad, bad, bad situation, worst case scenario situation that that Carnival is going through right now. Like once, once again, like a normal recession, your business slowly declines.
The Roni, it went to zero overnight, that’s just incredible, right? So you had a lot of new buyers just kind of looking at the stock over the past, you know, five, six days, since they raised that money and say, You know what, I’m gonna go ahead and buy this stock.
I think they’re gonna, they got enough, like, I think they got plenty of money to make it through. And I’m gonna go ahead and take a risk on this, and, and go and buy the stock and hopes that will be a 20 3040, you know, dollar stock in 234 years from now, and I make a 345 X on my money in a matter of, you know, let’s say 234 years, that’s pretty dang attractive.
And a lot of people are looking at this and saying bankruptcy might not be that high. So as an as a, you know, hedge fund out there that’s looking to, you know, get some outsized gains in a very short amount of time, or even some individual investors that have, you know, a few 100,000 amount, and even a few million dollars around, a lot of them might look at this stock and be like, it’s worth taking the risk with over $6 billion in capital.
Unless the ronin goes for a year or two years or something like that, outside that situation, a lot of folks believe this company is going to make it through. So you have a lot of new buyers stepping on a day like today. And then also, when the stock falls as much as it has.
You have some old buyers that go ahead and say, you know, people that have bought it in the past, whether they bought in Carnival Cruise Line, a 2030 4050 you know, some of those individuals who say, you know what, I think I think I’m gonna buy some more shares, I want to get my cost basis down, and $8 looks pretty dang attractive.
$9 pretty dang attractive. $10 looks pretty dang attractive, especially when you’re somebody that might have paid 3040 $50 per share like myself, right? I mean, you know, $8 is pretty dang cheap. So you have this combination of new buyers stepping in saying this company’s gonna make it through and we’re going to make a lot of money on the stock over a very short amount of time, like in the stock market.
234 years is not a long time. In order to consider yourself Long, long term, you got to consider yourself five years plus, if this stock makes a through and gets back to making 1,000,000,002 billion dollars of net income, let’s say three years from now. 2023 something like that, like the stock can be massively even from $10 like it won’t even be close to $10 right.
So yeah, a lot of those new folks stepping in the old buyers to say hey, you know what, this stock we feel much better about it now that they raised that 6 billion plus dollars, they’re going to make it through and so let’s go ahead and buy some shares.
Okay, so those are the three main reasons the volatility in the stock on a huge day like today, Saudi Arabians buying into the stock 8.2% stake and then new buyers and old buyers looking at the stock and saying, you know what, it’s kind of attractive seven or eight bucks a share, especially after they raised all that money.
Okay, that’s why the stocks moving up Tuesday. Now, we’ll see CL stocks keep going up. I think this is very important, especially for a lot of folks looking at the stock maybe bought the stock in the past few days, which is probably something you guys leave me a comment down there if you’re somebody that bought it recently, okay.
You know, some folks out there bought the stock, like literally just a couple days ago for seven or $8 a share. It’s trading at 10 or 11. Today, and they’ve made a ridiculous gain on their on their money in a short amount of time. A lot of people are wondering, is this stock gonna keep going up?
Or should I just go ahead and take my profits or run out of stock? And a lot of people got a 20% 30% gain in what a few days. That’s incredible. So some people like maybe I’ll just sell out of this and buy some other stock. Okay, so we’ll see CL keep going up, here’s my opinion on the situation.
If it’s a big F, if cruising can get back up and rolling in May, I’m talking to the beginning of May, I think this dock will probably keep momentum, okay. But basically, Carnival Cruise Line and the other players have to start doing some sort of cruising once again, in May, or there’s going to be some announcement that, hey, we’re going to start cruising, you know, that may, let’s say, fifth or may 10, or something like that.
There’s got to be some type of announcement around that, that in some point in May, you know, preferably the first half of May, that, hey, we’re going to get back up and rolling. We’re going to start cruise and you can book your cruise again, if you have it.
I think that would be huge for the psychology of the stock in the investor mindset people looking at new buyers and old buyers, wondering is this is that when when is this business model going to be allowed to just start getting some money again? Remember, $1 is better than $0? Right? One dollars better than $0? When can this business start making some sort of money?
So I think if an announcement like that happens, I think the stock will continue to move higher, because it’s going to be like, okay, now the business can finally get up and rolling. Okay. And the other part of that is, if they can start doing basically some sort of business and May, then they can ramp throughout the summer.
We know a lot of people love to take cruises in the summertime. Okay, and are these ships going to be to 100% capacity overnight? Absolutely not. There’s no way of that. Okay. But if the main the main issue with this business is the fact that their revenues are zero right now, that’s the main issue with this business model right now.
They can’t even do a cruise right now. I can tell you Carnival Cruise Line would much rather have their business be open, then close. Okay. So even though they the ships won’t be at 100% capacity, which they won’t, the fact that they could ramp throughout the summer would be huge for their business model in June.
July, August, ramped the business, rent the business, get the ships to 50% capacity, 60% capacity, 70% capacity, throw some great deals to their existing customers, which keep in mind, a business like Carnival has, you know, literally, you know, a millions, if not 10s of millions of new customers that have used their product over the past five or 10 years, throw out some amazing deals to some of these folks that you know.
Honestly don’t care that much about the Roni and they’re gonna say, you know what, let’s go on a cruise for blah, blah, blah, price, let me go and do that. And once you get on the board, you know, a lot of people spend a lot of money on these cruise ships, I think that would be huge.
I think you run into some issues with the stock, it will, you know, continue to be a weakened stock if, let’s say they don’t get up and running cruises until let’s say July or August. And the reason being is then you can’t even ramp in summer.
If you’re just starting get your business back and up and rolling at the end of summer, then you have to ramp in the fall time and into winter. That is not an ideal situation. That’s not an ideal situation. Carnival Cruise Line doesn’t want to have to do that.
So I think the biggest thing is just them possibly getting back to cruising in some sort of fashion in May ramping throughout the summer. And I think if that news could come out, I think this will be a stock that will continue to move up because investors will say You know what? This is pretty damn exciting. Okay, this was a this was a $50 stock not that long ago It is our business going to be back to normal overnight.
Heck, no. Is it even gonna be back to normal in a year from now? Heck, no. Okay, it’s gonna take several years to get back to that place. But the thing is, if the stock if their business ever gets back to a place where it’s making two to $3 billion a year net income, imagine where this stock price would be, it’s probably going to be what a 4050 $60 stock once again.
So that is why Carnival Cruise Line stock is making a huge upward move here today and kind of you know if I’m thinking about if the stocks gonna continue to move up, I think some news has to break within the next few weeks about hey, we’re going to start cruising again in May and we’re going to rip throughout the summer and going into.
2021 I think that would be really exciting for the stock and its stock price but I want to hear your guy’s opinion in that comment section. As always smash that thumbs up button. If you enjoyed today’s video. Thank you for watching and have a great day.