Shares of Norwegian Cruise Line (NYSE:NCLH) have declined significantly in price over the past few months due to the impact of COVID-19 restrictions on its operations. However, a fair question now is, is it wise to buy the stock at its current price level because the company is resuming cruise operations? Let’s discuss. Norwegian Cruise Line Holdings Ltd . (NCLH), which is based in Miami, is known for its Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. The company announced on August 13 that its game-changing new ship, Norwegian Prima, was floated out from the drydock at Fincantieri shipyard in Marghera, Italy, marking a significant milestone.
However, the stock has declined 4.8% in price over the past month and 24.3% over the past three months to close yesterday’s trading session at $24.57. NCLH’s losses widened in the second quarter. Also, the company is expected to report losses in the coming quarter because its fleet is not yet fully operational. So, NCLH’s near-term prospects look bleak.
Here’s what we think could influence NCLH’s performance in the coming months: