Carnival Stock Could Fall to $0 in a Worst-Case Scenario, Analyst Says

[Host Mike]

"Morgan Stanley analysts slashed their base case price target to $7, according to Bloomberg, and maintained an Underweight rating on the stock. In a worst, or “bear case” scenario, Carnival’s (ticker: CCL ) price could reach zero, they added."

"A Carnival spokesperson said the company was “making strong progress” as it continued to restart its fleet around the globe.

“There is pent-up demand for cruising and our occupancy levels continue to rise with our Carnival Cruise Line brand at 100% last quarter and forecasting 110% occupancy for the third quarter,” the spokesperson said in an emailed statement."

https://www.barrons.com/articles/carnival-cruise-stock-price-target-cut-51656504056

[RichC]

What I don't understand is how the stork could possible fall to zero since the company still has their ships that have to be worth something.
Could it be that they're far in debt and everything they own has been put up as collateral?

[Host Mike]

Carnival currently owes around 43 BILLION dollars.  The stock is currently selling in the $8 range.  Could it go lower?  We'll see. (now where did I put my broker's phone number?)

[RichC]

😱

[Host Mike]

52-wk high   
27.39

52-wk low   
8.10

As of July 22, 2022

[RichC]

At this point I have got much left to lose.