Throughout the post-pandemic period, the concept of "revenge travel" — a phenomenon where people sought to make up for lost time and experiences due to COVID-related restrictions — has been a powerful fundamental catalyst for businesses like Norwegian Cruise Line Holdings Ltd (NYSE:NCLH). Unfortunately, as economic difficulties continue to pile up, the idea that NCLH stock can continue to rise above a wall of worries is suspect. As such, there may be opportunities for the bearish side of the trade.
On paper, Norwegian doesn't necessarily appear as a candidate for downside speculation. In the cruise ship operator's second-quarter disclosure, the company posted earnings per share of 51 cents, meeting analysts' consensus estimate. What's more, it was a notable improvement over the year-ago quarter's print of 40 cents. On the top line, Norwegian's $2.52 billion admittedly missed the consensus estimate of $2.55 billion. However, the figure represented an improvement over last year's $2.37 billion.
