What's Going On With Royal Caribbean Cruises Stock

Royal Caribbean Cruises Ltd RCL shares are trading lower by 2.4% to $91.91 during Friday's session. Shares of cruise line stocks are trading lower in sympathy with Carnival Corp after the company reported third-quarter financial results and issued guidance.

Why It Matters

Royal Caribbean is a direct competitor of Carnival in the cruise industry. If Carnival, as a major rival, reports disappointing financial results or provides negative guidance, investors may extrapolate these challenges to Royal Caribbean.

This can result in concerns that Royal Caribbean will face similar difficulties, leading to a decrease in demand for its shares.

Also, if Carnival's results suggest that consumer demand for cruises is weakening or if it reports issues related to safety or health concerns, it can erode consumer confidence in the cruise industry.

This can lead to reduced bookings and revenue for Royal Caribbean, impacting its financial performance and stock price.

What Happened?

Carnival reported third-quarter FY23 sales growth of 59% year-on-year to $6.85 billion, beating the analyst consensus of $6.69 billion.

Passenger Cruise Days (PCD) increased 45% Y/Y to 25.8 million. Occupancy for the third-quarter was 109%. Available lower berth days (ALBD) for the third-quarter were 23.7 million...Read More

According to data from Benzinga Pro, RCL has a 52-week high of $112.95 and a 52-week low of $36.92.