Carnival share price has pulled back in the past few weeks, moving from the year-to-date high of 2,205p in August to 1,924p today. It is hovering near its lowest level since July despite the ongoing demand for cruising.
The cruise boom is continuing
Carnival stock price has pulled back in the past few months despite the ongoing cruise boom and record numbers.
The most recent results showed that the company did better than expected in the third quarter of this year. Its net yield rose to 4.6%, higher than the guidance of 3.5%.
The adjusted EBITDA jumped to $3 billion, higher than the guidance of $2.9 billion. Its net income of $2 billion was also higher than its guidance by about $200 million.
Carnival and other top players in the cruising industry are benefiting from the ongoing demand from customers seeking cheaper vacation options. That’s because hotels and airfares have remained higher since the pandemic ended.
Cruise line companies like Carnival and Royal Caribbean have capitalized on this issue and boosted marketing that showcases cruises a better alternative to land-based resorts.
A recent report by the American Automobile Association estimated that over 21.7 million US travelers will sail in 2026, up from 20.7 million this year. This growth marks the fourth consecutive year that the industry is booming.
Carnival bookings have soared
Carnival also reported higher bookings. For example, 2026 has already been half booked even as prices have jumped to a record high. The CEO said:
“Looking further ahead, 2027 is already off to a great start, achieving record booking volumes during the third quarter.”
Carnival has also continued to improve its balance sheet, including by refinancing, which helps it to reduce the interest expense.
It did that by issuing two senior unsecured notes of $1.2 billion and $3 billion, maturing in 2031 and 2032. These approaches have helped it to receive a higher credit rating from Moody’s and S&P Global.
Carnival’s business will likely continue doing well as it monetizes its customers by increasing its offerings, including by opening Celebration Key, a major resort in the Bahamas.
The company is also benefiting from the ongoing crude oil price plunge. Brent, the global benchmark, has moved to $60 after falling by over 20% from the year-to-date high.
Analysts are optimistic that Carnival’s business will continue thriving in the coming years. The average estimate is that its revenue will rise by 6.50% this year to $26.65 billion, followed by 4.3% in 2026 to $27.80 billion.
Carnival share price technical analysis
CCL stock chart | Source: TradingView
The daily timeframe chart shows that the Carnival stock price has pulled back in the past few months. It has now plunged below the 50-day and 100-day Exponential Moving Averages (EMA).
The stock has dropped below the important support level at 1,937p. This price is notable as it was the neckline of the head-and-shoulders pattern, which is a common bearish reversal sign. It has also formed a bearish flag pattern.
Therefore, the Carniva stock price will likely continue falling as sellers target the next key support at 1,800p. A move above the resistance at 2,000p will invalidate the bearish outlook.
The post Carnival share price forecast as the cruising boom intensifies appeared first on Invezz