Shares of Cruise Lines have experienced a huge drop following the news of the suspension of operations due to the second wave of COVID-19. But Carnival Corporation (NYSE: CCL) share has seen a considerable gain on Monday after the positive news on a potential COVID-19 vaccine.
Cruise lines have earlier announced that they have decided to halt operations. Carnival Corporation has also disclosed earlier that all the operations were going to stop through December 2020.
Shares of Carnival Corporation & plc (NYSE: CCL) rocketed 39.29% at $19.25. Its trading volume boomed to 183.66 million shares as compared to the average volume of 36.69 million shares. In the past 52-weeks of trading, Carnival Corporation’s stock has experienced a change of $7.80 from its 52-weeks low and $51.94 from its 52-weeks high. CCL has a total market capitalization of $16.82 billion at the time of writing.
On the other hand, Royal Caribbean Group (NYSE: RCL) soared 28.79% at 75.43. RCL has recorded a trading volume of 27.59 million shares as compared to the average volume of 8.00 million shares. It has traded up 291.84% from its 52-weeks low and traded down -44.26% from its 52-weeks high. RCL market cap has remained high, hitting $17.38 billion at the time of writing.
Likewise, other Cruise Line stocks such as Norwegian Cruise Line (NYSE: NCLH) experienced a gain of 26.75% at $21.51. NCLH has reported a trading volume of 74.57 million shares as compared to the average volume of 26.04 million.
So what exactly the reason behind this huge gain after a bad week. The news of the vaccine has lifted the stocks of the Cruise Line.
Pfizer Inc. (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) have disclosed Monday that the COVID-19 vaccine candidate of the companies has shown 90% effectiveness in reducing the symptoms of SARS-CoV-2, a virus that causes COVID-19.
The success of Pfizer and BioNTech in the Phase III trial of the COVID-19 vaccine candidate gave hope to the investors of the cruise line as they have experienced bad news from the past few weeks. 90% success in vaccine trial is far above what some experts have anticipated.
The cruise Lines Industry has experienced a negative impact because of COVID-19 restrictions. The Travel Services companies have no assurance that they would be able to start their operations in January 2021. The news of the vaccine doesn’t change that much, but it gave a ray of hope that in foreseeable future the companies will be able to restart their operations.