What's Going On With Carnival Stock?

Carnival Corp CCL plunged 12.5% to $17.52 Thursday morning as President Donald Trump's newly imposed reciprocal tariffs rattled global markets and raised fears of an economic slowdown that could hurt the travel industry.

What To Know: As the world's largest cruise operator, Carnival is particularly exposed to economic downturns and rising costs, both of which could be exacerbated by the escalating trade war.

Carnival, which operates brands such as Princess Cruises, Holland America Line and Seabourn, relies heavily on discretionary consumer spending and international travel.

With tariffs expected to drive up prices on goods and services, vacation budgets may shrink, leading to softer cruise bookings. Additionally, higher import costs for fuel, food and ship maintenance could weigh on Carnival's profit margins.

Another major concern is the potential for retaliatory measures from key markets such as China and the European Union, both of which are important sources of cruise passengers. If trade tensions dampen global economic growth, consumer confidence could take a hit, further pressuring demand for leisure travel.

Read Also: What’s Going On With Bank Of America Shares

How To Buy CCL Stock

By now you're likely curious about how to participate in the market for Carnival – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Carnival, which is trading at $20.02 as of publishing time, $100 would buy you 5.0 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, CCL has a 52-week high of $28.72 and a 52-week low of $13.78.