Carnival (CCL) continued its path downward. Shares failed to break $30-$33 throughout July and late October. CCL stock lost 6.78% to close at $24.76.
Fearful investors are betting that the cruise liner faces profit margin pressures. Although cruise ship demand is at an all-time high, it is reliant on discounted fares, free upgrades, and other gimmicky special offers.
Royal Caribbean Cruises (RCL) and Norwegian Cruise Line (NCLH) also traded lower. Investors should exercise caution in this sector.
Copart (CPRT) has only 3.32% in short interest, yet the stock closed below $40. Its 52-week high is $64.38. The seller of used vehicles earned $0.41 in EPS in the first quarter. Revenue increased by 0.9% Y/Y to $1.16 billion. CPRT stock trades at too high a P/E of 24.3 times. The firm is not growing, so investors are fleeing.
Paramount Skydance (PSKY) shares are in a downtrend, closing at $15.06. Its high of $20.86, albeit recent, is a distant memory. The firm risks facing stiff competition in its bid for Warner Bros. Discovery (WBD). Netflix (NFLX) and Comcast (CMCSA) are among the bidders in the first round, according to Reuters, which quoted a source.
In any case, the buyout of WBD faces regulatory hurdles. The government may deem the acquisition too big and bordering on monopolistic.
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