Why Norwegian Cruise Line Holdings Ltd. (NCLH) Went Down On Wednesday

We recently published a list of These 10 Firms Were Battered by Dismal Earnings, Outlook Guidance. In this article, we are going to take a look at where Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stands against other worst-performing stocks on Wednesday.

A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy’s contraction in the first quarter of the year, triggering fears of recession.

Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent.

Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year.

In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Norwegian Cruise Line fell by 7.77 percent on Wednesday to end at $16.03 apiece as investor sentiment was dampened by its dismal earnings performance in the first quarter of the year.

In a statement, the company said it swung to a net loss of $40.2 million from a net income of $17.3 million in the same period a year earlier on the back of lower capacity days and foreign exchange losses.

Revenues dropped by 2.9 percent to $2.127 billion from $2.191 billion year-on-year, primarily due to a decline in capacity days related to its larger ships’ increased berths in dry dock, weighed down further by a reduction in passenger air participation rates.

Looking ahead, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) updated its full-year guidance for 2025 to reflect recent booking trends and changes in the macroeconomic environment.

According to the company, it now expects net yield guidance to increase between 2 and 3 percent as compared with the previous guidance of 3 percent.

Adjusted net income is expected to be approximately $1.045 billion.

Overall, NCLH ranks 5th on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of NCLH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NCLH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.