Carnival's Stock Already Down 18 Percent As Micky Arison Braces For Sell-Off UPDATE

Categories: News
photo by Rvongher via Wikimedia Commons
The Costa Concordia sinks off Italy this weekend.
Hopefully Carnival CEO and Miami Heat owner Micky Arison has some of his billions stashed away in some nice, safe mutual funds. Arison already lost $1.3 billion last year to shrinking stocks and after this weekend's epic disaster by a Carnival-owned ship off Italy -- which left 6 dead, 29 missing, and experts fearing a massive backlash -- investors are expected to flee the company in droves once markets open worldwide today.

Actually, before the first bell even rings this morning, Carnival's stock has already plummeted 18 percent in pre-market trading. How low will it go by day's end?

Update: Carnival stock is still getting hammered as the number of dead has now risen to 11 with five more bodies discovered today. And the bad press will only get worse as Italian authorities have released audio that seems to show the ship's captain refusing to return to the stricken vessel to help passengers evacuate. Click through to listen.

Ever since the Costa Concordia struck a reef Friday night and dramatically sank off the Tuscan coast, Carnival's Doral headquarters has dealt with the worry that cruisers will stay away after days of horrible photos and gripping near-death stories.

Even if bookings don't plummet, investors are already selling off Carnival as if they have.

"The extensive media coverage of this incident and criticism of how the crew handled the situation could have some near-term impact on booking activity," ITG Investment analyst Matthew Jacob writes to CNBC this morning. "A slowdown in bookings could depress pricing during the crucial wave season."

Arison, meanwhile, has yet to speak about the catastrophe. Italian authorities have charged the ship's captain, Francesco Schettino, with manslaughter amid claims he fled the boat before helping passengers evacuate.

We'll update this post as trading opens in New York and Carnival's stock is really tested.

Update: By midday, Carnival stock is down just under 15 percent as the company estimates at least a $100 million hit to its profits from the catastrophe.

Audio released by Italian police seems to show Shettino, the ship's captain, repeatedly refusing to return to the sinking ship. Here it is with subtitles, via the Guardian:

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A group of us seniors in Canada have cruised every winter for years but never again with ships connected to the Carnaval line. It's sad that the Princess ships are  included in that group........ we will miss cruising but who wanta a vacation combined with worry.... 

Carnaval had better dedicate massive time and money to the retraining of every crew person on their pay list. Then, and only then, will our group return.

Gold love and Bless all those who perished and all those who are still suffering.

Carole, Alberta, Canada


What a wimp!!  It's absolutely disgusting what he did.


Micky Arison needs to stop being such a deadbeat and start paying rent on the AAA Arena.

Karma baby.


Thats some pretty scary stuff when you think about it. WOw.www.Total-Privacy dot US

f b
f b

today isnt a good day to die. not everybody is klingon



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