Is Norwegian’s Ship Sunk?

Danielle Shay joins Seema Mody on Trading Nation to discuss the future of Norwegian Cruise Lines. Click the image above to watch the full segment.

There’s no doubt there are sectors in the market that’ve been hit harder than others during this pandemic, but for me, cruise lines are the ones who’ve been hit the hardest, even worse than airlines.

Why?

For starters, they’re basically floating Petri dishes making consumers unwilling to entertain the idea of vacationing on one of them. Granted, the same could be said about airports and planes, but no one’s scared of getting stuck in the air, whereas you can totally get stuck out at sea if there was an outbreak on a boat. And what’s worse, you could be stuck at sea without any country allowing you entry!

Now tell me that doesn’t sound more desolate than a plane ride. Couple that with flu season, and it’s safe to say their sales will be significantly lower for the foreseeable future. Their only hope of survival will be to entice millennials to take a cruise… but their core customer base (50 years+) will be opting out.

In my opinion, bankruptcy is looming and you won’t soon see me buying Norwegian Cruise Lines.

Click here to watch the full segment.

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1 thought on “Is Norwegian’s Ship Sunk?”

  1. Yes definitely there’s better stocks with better volatility I don’t short so I look for squeezes to the upside.

    Reply

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