Read This Before Buying Carnival Stock

Group 1: Company Performance - Carnival's shares have increased by 172% over the past three years, reflecting a strong recovery and improved market sentiment [1] - In Q3, Carnival reported record revenue, net yields, and customer deposits, indicating robust demand for cruise travel post-pandemic [2] - The company achieved $2.3 billion in operating income for fiscal Q3 2025, a 4% year-over-year increase, significantly better than the $279 million loss in the same period of 2022 [4] Group 2: Financial Health - Carnival's long-term debt stands at $26.5 billion, but the company is actively working to reduce this debt through refinancing, leading to upgrades from major bond rating agencies [6] - The market capitalization of Carnival is $33.6 billion, with its debt load being nearly 80% of this value, which may raise concerns among investors seeking stronger financial positions [7] Group 3: Market Dynamics - The cruise market currently represents a small portion of the global vacation market, with Carnival positioned to capture growth by attracting younger and first-time cruise travelers [3] - The potential for a recession poses risks for Carnival, as discretionary spending cuts could impact revenue and earnings [8]