Carnival Stock Has a Lot to Prove in 2025
The leading cruise line will need to come through with a strong financial update this week to reverse this year's slide.
Last year was great for investors in cruise line stocks, but the water has been a little more choppy in 2025. Shares of Carnival (NYSE: CCL) (NYSE: CUK), the world's largest cruise line operator by revenue, have declined 16% so far this year. Smaller rival Norwegian Cruise Line (NYSE: NCLH) has fared even worse, with a 22% slide in 2025. Market cap leader Royal Caribbean (NYSE: RCL), meanwhile, has fared a little better, with just a 5% drop. But just last year, Carnival, Royal Caribbean, and NCL soared 34%, 79%, and 28%, respectively.
A couple of external factors have weighed on the country's three largest cruise lines. The escalating tariff trade war and mounting geopolitical disharmony could be eating at demand and risk profile for ocean getaways to exotic ports of call. Consumer confidence has fallen for three consecutive months, potentially cooling the ability for folks to pay for their watery escapes. Finally, Commerce Secretary Howard Lutnick last month mentioned cracking down on cruise ship operators sailing Panama- or Liberia-flagged ships to avoid paying U.S. taxes. That's a challenge that previous administrations have failed to push through, and now it's one more uncertainty to worry investors.
Carnival has a chance to nudge momentum back to the side of the bulls. It reports its fiscal first-quarter results on Friday morning, and that's going to be a big update for all cruise line fans and investors.
