Market Overview

Here's How Much Investing $100 In Carnival Stock Back In 2010 Would Be Worth Today

Here's How Much Investing $100 In Carnival Stock Back In 2010 Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500's (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Carnival’s Difficult Decade

One of the market laggards of the decade was cruise line giant Carnival Corp (NYSE: CCL).

Carnival is the largest company in the cruise industry, and for most of the past decade it benefited from an aging baby boomer generation. Coming into 2020, Carnival was on track to add 18 new ships to its fleet of more than 100 global ships over the next five years.

Unfortunately, after a solid decade of returns, Carnival has experienced a near worst-case scenario to kick off the 2020s. The global COVID-19 outbreak has shut down all of Carnival’s operations, and investors have no idea when they will be back up and running and how much demand there will be for vacationers to be crowded into a cruise ship for days.

Carnival shares started the 2010s trading at around $32. Carnival made it to $48.14 in early 2011 before trading sideways between $30 and $45 for most of the next four years.

The stock finally broke out above $50 in mid-2015 and continued steadily marching higher before hitting its decade high of $72.70 in early 2018.

The recent coronavirus fears sent Carnival shares crashing through their 2010s low of $28.96 all the way below $10 in recent weeks. Just last week, Carnival shares made new all-time lows of $7.80.

2020 And Beyond

After a solid decade in the 2010s, Carnival has suddenly turned into a disaster for long-term investors.

In fact, $100 worth of Carnival stock in 2010 would be worth $32 today, assuming reinvested dividends.

Looking ahead, analysts expect Carnival will bounce back in 2020. The average price target among the 14 analysts covering the stock is $32, suggesting 290.5% upside from current levels.

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Photo courtesy of Carnival. 


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