These Cruise Line Stocks Are Falling Amid War-Driven Volatility

Last week, I wrote about how the war in the Middle East is hitting airline stocks hard, as it has pushed the price of jet fuel significantly higher while depressing demand for air travel. But there's another group of stocks getting hit even harder -- possibly the worst-faring stocks in the S&P 500 index since the war broke out.I'm talking about cruise lines. Norwegian Cruise Lines Holdings (NYSE: NCLH) is down 21% since the war began, while Carnival (NYSE: CCL) (NYSE: CUK) has plummeted some 23%. Could this be a buying opportunity for investors?The reasons for the plunges in these stocks are similar to those of the airlines: Rising fuel prices and softening demand. Fuel is one of the largest expenses for cruise lines. A ship can consume 250 tons of fuel daily or more, at a cost of more than $100,000 per day. Right now, Brent crude, the international benchmark, is about $27 higher per barrel than it was right before the war. That's an increase of about 38%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool