Royal Caribbean Cruises Ltd RCL shares hit a new all-time high of $238.10 Wednesday morning. The stock has now gained some 16% in November following Donald Trump's presidential election win, as investors anticipate a favorable economic environment that could boost consumer spending and tourism.
Trump's proposed tax cuts and business-friendly policies are viewed as potential catalysts for disposable income growth, especially among middle- and upper-income households, which make up a significant portion of Royal Caribbean's customer base.
With more money in consumers' pockets, demand for travel and leisure experiences like cruises could rise, potentially translating into higher bookings and revenue for the cruise line.
What To Know: Trump's stance on reducing regulatory restrictions could directly benefit Royal Caribbean's operating model. During his previous term, Trump's administration took steps to streamline regulations on industries including tourism and transportation, and a similar approach now could reduce compliance costs for cruise operators.
This regulatory relief could help Royal Caribbean expand routes, add new destinations, and potentially reduce environmental compliance costs, thereby improving profitability.
Royal Caribbean also stands to benefit from any stimulus measures aimed at supporting the broader travel and leisure industry, which has faced substantial challenges over the past few years. With a strong recovery in demand already underway, additional government support could help Royal Caribbean further accelerate its post-pandemic rebound.
There are also risks tied to Trump’s proposed tariffs and trade policies, which could impact Royal Caribbean's supply chain costs for goods sourced internationally to stock its ships and outfit new builds.
Additionally, a stronger U.S. dollar, which may result from Trump's economic agenda, could make international travel more expensive for non-U.S. customers, potentially dampening demand from key international markets.
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How To Buy RCL Stock
By now you're likely curious about how to participate in the market for Royal Caribbean Group – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Royal Caribbean Group, which is trading at $237.4 as of publishing time, $100 would buy you 0.42 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, RCL has a 52-week high of $238.10 and a 52-week low of $100.50.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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