Carnival (NYSE:CCL) shares plunged more than 10% intra-day today after the company reported its Q2 earnings.

Q2 EPS of ($0.31) came in better than the Street estimate of ($0.34). Revenue was $4.9 billion, beating the Street estimate of $4.78 billion. For the full 2023 year, the company expects adjusted EBITDA of $4.10-$4.25 billion, higher than its previous guidance in March and with a midpoint increase of $175 million.

Following the earnings, Stifel reaffirmed its Buy rating and set a price target of $18.00 for the company, anticipating a "sell the news" reaction from investors regarding the shares. Acknowledging the significant upward trajectory of shares in the past month, analysts believe that short-term investors seeking quick gains have been riding the momentum wave.

The analysts suggest that these investors may question the potential for further improvements in the near term, leading to downward pressure on the stock.