There's a funny image going around the internet... It's a billboard for the movie I Know What You Did Last Summer. And underneath the movie poster, someone added text that says "ABSOLUTELY NOTHING." Now that summer has (at least unofficially) begun, this image is painfully real. Many camps have canceled their sessions. Parents - who have already endured three months of at-home cyberlearning - are looking at another three months of perpetual complaints of boredom until their kids can go back to school... if schools reopen in the fall. And sadly, countless vacations have been laid to rest. So right now, many of us are looking at a long, hot summer full of "absolutely nothing." Unless you're getting creative. So today we're going to cover which companies have suffered due to these dead-on-arrival trips... and which ones are the lucky beneficiaries. Don't Expect Free Food on Your Next Flight...If you had any hopes of hopping on a plane this summer, those dreams have likely been squashed. And the airline companies are really feeling the hurt... Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), American Airlines (Nasdaq: AAL) and United Airlines (Nasdaq: UAL) posted losses in the first quarter. And they warned that the road to recovery would be slow - even taking years. The demand just isn't there right now. The real salt in the wound came when Warren Buffett's company, Berkshire Hathaway, sold its entire stakes in all four carriers. Beyond airlines, other vacation-dependent stocks are having a rough 2020 as well... Online travel companies like Expedia Group (Nasdaq: EXPE) and Tripadvisor (Nasdaq: TRIP) are understandably struggling. Since no one knows when countries, states or tourist attractions will reopen, it's nearly impossible to plan a new trip right now. Plus, some of the worst victims have been cruise lines, like Carnival Corp. (NYSE: CCL) and Norwegian Cruise Line Holdings (NYSE: NCLH). Because - let's face it - cruise ships are essentially gigantic floating petri dishes. None of these falling knives should come as a surprise. And the timeline for "back to normal" is just a stab in the dark. In the meantime, the pandemic has an indefinite hold on all adventure planning. Unless you're thinking outside the box... |
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