SS/RCCL Finances: Improving, Options, Questions??!!

[TLCOhio]

On 7/8/2024 at 11:16 AM, Pizzasteve said:

Beating the market is very difficult.

 

Yes, not only is it tough to "beat the market", understanding it now is even more challenging.  Any predictions?

 

From the Wall Street Journal early this morning, below is their chart for Royal Caribbean for so far this week.  Is this a wild, super crazy ride of UP and DOWN?  Hard to figure out and understand?  More later today or tomorrow after the markets closer for this week.  

 

THANKS!  Enjoy!  Terry in Ohio

 

Lisbon vs. Porto?  Many different Portugal tips, options, ideas, visuals, etc. with more than 31,800 views at:   https://boards.cruisecritic.com/topic/2558841-lisbon-vs-porto-which-best/page/7/#comment-66782296

[TLCOhio]

From a financial news website yesterday morning, they had this headline: “Royal Caribbean Cruises Has A Somewhat Strained Balance Sheet” with these highlights: “Warren Buffett famously said, 'Volatility is far from synonymous with risk.'   It's only natural to consider a company's balance sheet when you examine how risky it is. We note that Royal Caribbean does have debt on its balance sheet. But is this debt a concern to shareholders?”

 

Here are their numbers as a response to their key question:  "Royal Caribbean Cruises had US$20.2b of debt at March 2024, down from US$21.1b a year prior. However, because it has a cash reserve of US$437.0m, its net debt is less, at about US$19.7b.  Royal Caribbean had liabilities of US$9.91b due within 12 months, and liabilities of US$20.0b due beyond 12 months. Offsetting these obligations, it had cash of US$437.0m as well as receivables valued at US$455.0m due within 12 months. So its liabilities total US$29.0b more than the combination of its cash and short-term receivables.  This is a mountain of leverage even relative to its gargantuan market capitalization of US$42.0b."

 

What's their bottom line analysis?  "It's worth checking how much of that EBIT is backed by free cash flow. Looking at the most recent two years, Royal Caribbean Cruises recorded free cash flow of 35% of its EBIT.  Royal Caribbean's interest cover and net debt to EBITDA definitely weigh on it. But the good news is it seems to be able to grow its EBIT with ease. Looking at all the angles mentioned above, it does seem to us that Royal Caribbean Cruises is a somewhat risky investment as a result of its debt."

 

Reactions and insights from those with more financial expertise than my limited skills and experience?

 

Full story at:

https://finance.yahoo.com/news/royal-caribbean-cruises-nyse-rcl-130025106.html

 

THANKS!  Enjoy!  Terry in Ohio

 

Love the Caribbean? Here are popular posts/links with Dominica having nearly 30,000 views. Much information for . . . .

Barbados:  https://boards.cruisecritic.com/topic/2179164-barbados-50th-birthday-our-pixs-experiences-feb2015/page/3/#comment-65530134Or, Dominica:  https://boards.cruisecritic.com/topic/2169714-dominica-love-our-experience-pictures-etc/page/3/#comment-66637276

[TLCOhio]

What a "Wild Ride" for Royal Caribbean during the most recent two days. From about $158 yesterday morning to near $167 today.  Up, UP!!

 

And today, that also marks a new 52-week high for RCL!!

 

From the Wall Street Journal late this afternoon, below are the charts for the three major cruise lines.  Plus, charts for Viking and the overall S&P 500 index during the past week's trading.  Despite questions as to the overall debt load facing cruise lines, they performed well later this week. 

 

THANKS!  Enjoy!  Terry in Ohio

 

Lisbon vs. Porto?  Many different Portugal tips, options, ideas, visuals, etc. with more than 31,800 views at:   https://boards.cruisecritic.com/topic/2558841-lisbon-vs-porto-which-best/page/7/#comment-66782296

 

Here are the charts of the three major cruise lines during this past week of trading from the Wall Street Journal.:

(Open your screen/viewer wider to see these visuals larger/better!)

 

 

 

Here is newly-listed Viking for the past week.  Lots of ups and downs?:

 

For perspective to the overall, broader market, here was the performance of the S&P 500 during this past week.:

[TLCOhio]

From MSN News and this financial news website over the weekend, they had this headline: “If You'd Invested $1,000 in Norwegian Cruise Line Stock 5 Years Ago, Here's How Much You'd Have Today” with these highlights: “Five years ago, Norwegian Cruise Line stock sailed along and the travel market seemed entirely secure.  Then, the COVID-19 pandemic struck and cruise activity came to a standstill. Now, in mid-2024, investors can see Norwegian Cruise Line's recent progress -- yet, for various reasons, the share price is nowhere near a full recovery.”

 

Here are more details and money specifics:  "Let's say you were unfortunate enough to invest $1,000 in Norwegian Cruise Line stock five years ago, when it traded at around $49. If the share price is roughly $19 now, this represents a 61% decline.   Thus, your $1,000 investment would currently be worth around $390. Clearly, it's been rough sailing amid the choppy waters of the post-pandemic cruise-line market.  The most obvious culprit is consumer price inflation, the pinch of which is still felt by middle-class America, even if the headline numbers seem to be gradually improving. Moreover, as Bank of America analysts observed, cruise-line operators like Norwegian Cruise Line don't have the pricing power they once had."

 

Reactions and insights?  

 

Full story at:

https://www.msn.com/en-us/money/topstocks/if-youd-invested-1000-in-norwegian-cruise-line-stock-5-years-ago-heres-how-much-youd-have-today/ar-BB1pVKe2?ocid=BingNewsVerp

 

THANKS!  Enjoy!  Terry in Ohio

 

Abu Dhabi vs. Dubai?  Many different UAE tips, options, ideas, visuals, etc., with more than 22,000 views at:  https://boards.cruisecritic.com/topic/2521493-abu-dhabi-vs-dubai-procon-factors/page/5/#comment-66634467

[TLCOhio]

Royal Caribbean just achieved a new 52-week high today and the other two major cruise lines were both up, UP by more 4% in value via today's trading.  Why?  Part of it is that the overall market continues to soar upward in a very positive manner.  

 

From the Wall Street Journal late this afternoon, here is their chart for Royal Caribbean during the most recent five days of trading.  

 

THANKS!  Enjoy!  Terry in Ohio

 

Enjoy the Caribbean? Here are two popular posts/links with thousands of views with much info for . . . . Grenada   

https://boards.cruisecritic.com/topic/2179927-grenada-pixs-fun-experiences-jan2015/page/2/#comment-66823149

Or, Aruba:  https://boards.cruisecritic.com/topic/2178325-aruba-pixs-fun-experiences-feb2015/page/3/#comment-66677721

[TLCOhio]

Royal Caribbean hit a new 52-week high this week and the other two major cruise lines were both up during Tuesday and Wednesday trading.  But, why?  It was not the overall market as the below S&P 500 chart reflects downward stock trends overall for this week..  

 

From the Wall Street Journal late this afternoon, below are their charts for Royal Caribbean and the other cruise companies during the most recent five days of trading.  Plus, more!!

 

THANKS!  Enjoy!  Terry in Ohio   

 

Barcelona/Med: June 2011, with stops in Villefranche, ports near Pisa and Rome, Naples, Kotor, Venice and Dubrovnik. Great visuals with key highlights, tips, etc. Live/blog now at 260,258 views.

https://boards.cruisecritic.com/topic/1362155-solstice-livefirst-timer-reportspix’s-italycroatian-june-7-19/

 

Here are the charts of the three major cruise lines from the Wall Street Journal during this past week of trading.:

(Open your screen/viewer wider to see these visuals larger/better!)

 

 

 

This is the Royal Caribbean chart from the Wall Street Journal reflecting their strongly upward, super positive trend since the first of this year.  Nice movement?:

 

Here is the chart for Viking for this past week.   A little up and down?:

 

For comparison from the Wall Street Journal, this chart shows this past week's steady downward slide for the overall S&P 500 Index.:

[TLCOhio]

From the Wall Street Journal late yesterday, below are the charts showing both Carnival and Norwegian jumping up, UP big-time yesterday.  Both of these stocks are moving much closer to their 52-week highs.  

 

 

 

THANKS!  Enjoy!  Terry in Ohio

[TLCOhio]

Is there a saying about what goes UP will go DOWN?  Still true?  This week proved it in a major way for the cruise lines.  

 

After last week when Royal Caribbean hit a new 52-week high, things slid downhill starting on Wednesday.  See below.    RCL down nearly $20 a share!!  But, why?  It was partly the overall market as the below S&P 500 chart reflects downward stock trends for this week..  

 

From the Wall Street Journal late this afternoon, below are their charts for Royal Caribbean and the other cruise companies during the most recent five days of trading.  Plus the overall market trend with the S&P 500.  

 

From a Wall Street Journal-related financial website this morning, they had this headline: “Royal Caribbean CEO explains why cruises are so popular" with this sub-headline: 
"Royal still sees strong cruise demand despite record pricing, and will pay its first dividend since March 2020,”

 

Here are some of their reporting highlights: “Royal Caribbean Group reported Thursday second-quarter profit that beat expectations and raised its full-year outlook, as demand for cruises remained strong into next year and as onboard spending increased.   The company also said it would starting paying a dividend again, for the first time since March 2020, at the start of the COVID-19 pandemic.  'Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2023 levels driven by greater participation at higher prices,' the company added.  Chief Executive Jason Liberty provided an upbeat outlook for the company and the cruise industry, saying on the post-earnings call with analysts that cruise purchase intent continues to strengthen, as cruise prices remain 'an attractive value proposition.'  He said he believes there is “a 20% value gap” between cruises and land-based vacations, which is likely shielding the company from the 'noise' being heard from land-based operators.”

 

Reactions and comments?  Predictions for next week and August?

 

Full story at:

https://www.marketwatch.com/story/royal-caribbeans-stock-falls-even-after-a-profit-beat-and-raised-outlook-while-passenger-cruise-days-came-up-shy-1d552fa7?_gl=1*14eftd9*_gcl_au*MTI2NjY2NDYxOC4xNzIxMzM5OTMw*_ga*NzI5MzY4NzcyLjE3MTU4MDA4MzM.*_ga_K2H7B9JRSS*MTcyMjAyODY4Ni4xNDcuMS4xNzIyMDI5NTgyLjI2LjAuMA..

 

THANKS!  Enjoy!  Terry in Ohio   

 

Norway Coast/Fjords/Arctic Circle cruise from Copenhagen, July 2010, to the top of Europe. Scenic visuals with key tips. Live/blog at 253,229 views.

https://boards.cruisecritic.com/topic/1172051-livesilver-cloud-norway-coastfjords-july-1-16-reports/

 

 

Here are the charts of the three major cruise lines from the Wall Street Journal during this past week of trading.:

(Open your screen/viewer wider to see these visuals larger/better!)

 

 

 

Here is the chart for the S&P 500 from the Wall Street Journal during this past week of trading.:

 

[TLCOhio]

From Barron's and MSN News late last week, they had this headline: “Royal Caribbean Raises Its Outlook. Cruise Demand Is Strong.” with these highlights from the RCL CEO quarterly reporting: “Royal Caribbean Group stock dropped even after the cruise line posted better-than-expected second-quarter results, raised its forecast for its 2024 earnings, and reinstated its dividend.  Royal Caribbean reported second-quarter adjusted earnings of $3.21 a share from revenue of $4.1 billion. Analysts surveyed by FactSet were expecting earnings of $2.76 a share and revenue of $4 billion.  The cruise line also said it now expects 2024 adjusted earnings to be in the range of $11.35 to $11.45 a share, compared with an earlier call for $10.70 to $10.90 a share.”

 

If the news was that good, why did not stock values go UP, UP?  

 

Maybe it was this factor cited in their reporting: "An expected increase in annual costs could be the downward driver.  Royal Caribbean said net cruise costs per available passenger cruise days—excluding fuel—are expected to rise by approximately 6%.  The company had said those costs were expected to increase 5.5%."

 

Inflation, higher costs?  It affects cruise lines, too!!

 

Full story at:

https://www.msn.com/en-us/travel/news/royal-caribbean-raises-its-outlook-cruise-demand-is-strong/ar-BB1qBXe2?ocid=BingNewsVerp

 

THANKS!  Enjoy!  Terry in Ohio   

 

Sydney to NZ/Auckland Adventure, live/blog 2014 sampling/details with many exciting visuals and key highlights.  On page 23, post #571, see a complete index for all of the pictures, postings.  Now at 252,193 views.

https://boards.cruisecritic.com/topic/1896175-solstice-live-australianzhawaii-many-pix’s-jan-20-feb-3/

[highplanesdrifters]

Just now, TLCOhio said:

Inflation, higher costs?  It affects cruise lines, too!!

 

I smell higher prices, crowded ships,  inferior food and service.

[TLCOhio]

From this below-connected financial news website three days ago, they had the full transcript from last week's Royal Caribbean's quarterly report and Q&A with financial analysts.  Those responding included: Jason Liberty, Chief Executive Officer, Naftali Holtz, Chief Financial Officer and Michael Bayley, President and CEO of Royal Caribbean International. 

 

Among my key highlight take-aways would be: 

 

Overview comments from RCL CEO Liberty: "The North American consumer who represents approximately 80% of our sourcing this year continues to be robust, driving strong yield growth across all key products. In addition to strength in the Caribbean, European and Alaska summer itineraries are performing exceptionally well, and we have experienced greater pricing power than expected since our last earnings call.  Our research shows that younger generations, millennials and younger, are also benefiting from the 10% increase in leisure time compared to 2019 that they intend to allocate more of this time on travel than any other leisure category.  Today, one of every two customers is a millennial or younger.  Our short Caribbean cruise product is an important entry point for new-to-cruise and new-to-brand with nearly seven and 10 guests following in these categories and always skewing more towards younger customers."

 

As to Silversea, the CEO shared: "We also launched Silver Ray, which continues to redefine the ultra-luxury segment. Since introducing Nova class last year, Silver Nova and Silver Ray have attracted a higher mix of younger guests than the rest of the fleet."

 

Reaching those younger, future customers came through loud and clear.  And for pricing and future bookings?  The CEO noted: "We're in a very strong book position for 2025, pricing is up and increasing are the trends that we continue to see.  The pattern show pricing continues to accelerate.  (It) is not just a ticket, but it's also what's happening onboard. And I think the power of our pre-cruise commerce engine is shifting more and more of that booking activity for onboard spend forward, which is also resulting in us getting our guests to have a fuller breadth of experiences, which increases our share of wallet.  Our pricing continues to increase into 2025 and into 2026. And that's not just happening at the short product that's happening in the ultra-luxury space as well."

 

Much more covered when reading the full transcript.  There was a significant amount about offering cruises shorter in length, operating "Beach Club" private islands in the Caribbean, attracting younger customers who have never cruised previously, the value advantage/difference for cruises versus land-based experiences, etc.  

 

Full story at:

https://seekingalpha.com/article/4706637-royal-caribbean-cruises-ltd-rcl-q2-2024-earnings-call-transcript

 

THANKS!  Enjoy!  Terry in Ohio   

 

Venice: Loving It & Why??!!  Is one of your future desires or past favorites? See these many visual samples for its great history and architecture.  This posting is now at 115,622 views.

http://boards.cruisecritic.com/showthread.php?t=1278226

[TLCOhio]

13 minutes ago, highplanesdrifters said:

I smell higher prices, crowded ships,  inferior food and service.

 

Yes, there was much about prices/revenue going up and the ships filling up during last week's financial session.  Nor, in earlier quarterly reviews with any of the three brands, has this issue arisen.  Nothing was raised last week, directly or indirectly, as to "inferior food and service".  Not sure, however, if it would come up during such financial analysts calls.  

 

From our 15-day, February, Mumbai to Singapore, Silver Moon sailing, there were a few limited cases where the food might have been a little better.  BUT, overall for us, the food and service were very good.  We did not notice, on-board the ship, any major negative slide downward for these two, important categories of quality.  There were a couple of pre-cruise slip-ups due to poor direction/management from the main office "bean-counters".  But that's another story/question as to promises made and not kept.  

 

THANKS!  Enjoy!  Terry in Ohio

 

Amazon River-Caribbean 2015 adventure live/blog starting in Barbados on the Silver Cloud for 26 days. Many visuals from this amazing river and Caribbean Islands (Dutch ABC's, St. Barts, Dominica, Grenada, San Juan, etc.).  Now at 76,163 views:

https://boards.cruisecritic.com/topic/2076101-live-amazon-river-caribbean-many-pix’s-terryohio/

[highplanesdrifters]

Just now, TLCOhio said:

overall for us, the food and service were very good.  

 

Hope springs eternal!  Keep that trend going!

[TLCOhio]

On 7/29/2024 at 12:34 PM, highplanesdrifters said:

Hope springs eternal!  Keep that trend going!

 

Appreciate this follow-up about "HOPE" being eternal.  From our Silver Moon experience, I forgot to share that the "entertainment" was a little mixed.  With Silversea, we do not expect to get the larger-scale productions such as done with bigger ships such as provided by Celebrity, Royal Caribbean and Carnival.  On our sailing it was just two singers, plus four dancers.  Personally, I like the wider variety and creativity that can be accomplished with more singers.  On our cruise, we had no guest speaker enrichment.  That was supposedly due to the African circumnavigation that made scheduling more challenged.  For a 15-day cruise, we would have liked to have seen and been offered more in this area.      

 

From the Wall Street Journal sister publication of Barron's and MSN News this morning, they had this headline: “Norwegian Cruise Line Sails Higher. Demand Looks Strong.” with these highlights from this morning's meeting with stock analysts: “Norwegian Cruise Line Holdings stock climbed Wednesday after the Miami-based cruise operator reported better-than-expected profit and raised its end-of-2024 guidance.  Shares were up 2.4% to $19. The stock has fallen 7.4% this year; the benchmark S&P 500 is up 14%.   Other cruise stocks, including Royal Caribbean and Carnival, were also rising.”

 

Here's more on their financial details from this quarterly report earlier today: "Norwegian reported adjusted earnings of 40 cents a share for the June quarter, beating forecasts for 32 cents a share. Sales of $2.37 billion fell just short of analysts’ $2.38 billion target.  Norwegian also upped its full-year adjusted profit guidance to $1.53 a share, up 8% from its previous forecast for $1.42, with CEO Harry Sommer touting 'robust market demand'. "

 

Full story at:

https://www.msn.com/en-us/money/companies/norwegian-cruise-line-sails-higher-demand-looks-strong/ar-BB1qX6JQ?ocid=BingNewsVerp

 

THANKS!  Enjoy!  Terry in Ohio

 

Athens & Greece: Visuals, details from two visits in a city and nearby with great history, culture and architecture.  Now at 67,946 views.

http://boards.cruisecritic.com/showthread.php?t=1101008

[highplanesdrifters]

2 hours ago, TLCOhio said:

On our cruise, we had no guest speaker enrichment

 

On our Seabourn Eastern Med trip last fall we had no enrichment lectures either.  Such a historical hotbed.  Major disappointment. 

 

Oh wait, there was a lecture about wine.  I did my own research at the obs bar.

[TLCOhio]

13 hours ago, highplanesdrifters said:

On our Seabourn Eastern Med trip last fall we had no enrichment lectures either.  Such a historical hotbed.  Major disappointment. Oh wait, there was a lecture about wine.  I did my own research at the obs bar.

 

Appreciate this follow-up about Seabourn missing for delivering some important enrichment lecture offerings.  Funny and cute as to your wine research!!  On some short, all port stop cruises, it is hard to make those programs work on the schedules.  But, in key areas and/or with a number of sea days, having such programs is vital.    

 

From Yahoo News and this  financial news website yesterday, they had this headline: “Norwegian Cruise Line Sees ‘No Cracks’ in Guest Spending” with these highlights: “Norwegian Cruise Line Holdings executives say they aren’t seeing a reduction in guest spending.  'We are seeing absolutely no decrease in onboard spend,' said Mark Kempa, chief financial officer for Norwegian Cruise Line, on an earnings call Wednesday. 'Overall, the short answer is no cracks, no deterioration.'  Analysts asked about a slowdown after Marriott executives reported in a slight softening in hotel guest spending in the second quarter.”

 

More details next as to yesterday's Norwegian quarterly finance call, Q&A, etc.  

 

Full story at:

https://finance.yahoo.com/news/norwegian-cruise-line-sees-no-172513580.html

 

THANKS!  Enjoy!  Terry in Ohio

 

AFRICA?!!?: Fun, interesting visuals, plus travel details from this early 2016 live/blog. At 57,150 views. Featuring Cape Town, South Africa’s coast, Mozambique, Victoria Falls/Zambia and Botswana's famed Okavango Delta.

www.boards.cruisecritic.com/showthread.php?t=2310337

[TLCOhio]

From Thomson/Reuters and Yahoo this morning, they had this headline: “Q2 2024 Norwegian Cruise Line Holdings Ltd Earnings Call” with a full transcript from yesterday's quarterly session with Wall Street financial analysts.  

 

Below are some of the highlights coming from CEO Harry Sommer, Norwegian Cruise Line Holdings and Mark Kempa, CFO.

 

As to pricing versus bookings, here were interesting comments from their CEO: “Our goal is to be an optimum booked position such that we can maximize yield.  We don't take record booked positions to the bank; we take yield to the bank. And we have calibrated our tools such that sometimes it's okay to slow down bookings in order to raise prices.  We have really seen robust pricing for 2025, up significantly compared to this time last year for '24."

 

Much was also discussed as to controlling costs and seeking efficiencies in their operations.  Much also was discussed and covered as to upcoming new builds, their Caribbean private islands, converting borrowings to stock, air costs reductions being passed on to customers, Middle-East impacts, etc.  

 

Reading this long transcript from this hour-long session helps give more background as to the complications and challenges in running a multi-brand, international cruise line business.  Not easy and simple like managing a single, local hot dog stand in a resort.  Very complicated and fast-changing business operation!!  Most of their customers are coming from North America, but they also draw significantly from other locations around the world. 

 

Full story/transcript at:

https://finance.yahoo.com/news/q2-2024-norwegian-cruise-line-071358544.html

 

THANKS!  Enjoy!  Terry in Ohio

 

Kotor/Montenegro:  Various visual samples, tips, details, etc., for this scenic, historic location. Over 56,669 views.

http://boards.cruisecritic.com/showthread.php?t=1439193

[TLCOhio]

From the Wall Street Journal, here is their chart for Royal Caribbean as of early afternoon.  BIG DROP!!  Why?  What is driving it?  

 

The other two major cruise lines were down this morning, but not by this large of a percentage.  Overall market is up significantly!!  Assume we will learn more later today or tomorrow.  Any guesses or information as to the factors are driving this current negative activity for RCL?  

 

Full story/transcript at:

https://finance.yahoo.com/news/q2-2024-norwegian-cruise-line-071358544.html

 

THANKS!  Enjoy!  Terry in Ohio

 

Dubrovnik!  Visual samples, tips, details, etc., for this super scenic and historic location. Over 54,698 views.    

http://boards.cruisecritic.com/showthread.php?t=1439227

[TLCOhio]

Could this article have driven down Royal Caribbean stock today?  From the Wall Street Journal's sister publication of Barron's and MSN News today, they had this headline: “Travel Stocks Have Lagged. This Cruise Stock May Have Smoother Sailing.” with these highlights: “Many people get the blues when a trip ends, and after a huge surge in postpandemic vacations, travel stocks have dealt with a bit of a hangover as well. Just look at airlines and cruise lines.  Those two industries have been on a roller-coaster ride in recent years. They naturally plunged during the brief Covid-induced 2020 recession, only to explode higher in 2021 and 2022, when restrictions began to lift and vaccines made more people comfortable about traveling again.”

 

Here is more: "Only Royal Caribbean has shot higher, to the tune of about 43% over the past year, more than double the S&P 500’s 20% gain.  One stock, and one year, don’t a pattern make. Moreover, excluding Royal Caribbean, the biggest airline and cruise stocks have uniformly been bad bets over the past five- and 10-year periods, woefully underperforming the S&P 500.   Yet what is interesting is that Royal Caribbean alone among this group has surpassed its 2019 prepandemic stock price and is the only one that comes close to keeping pace with the S&P 500 over the past decade, climbing 162% to the index’s 186% gain."

 

Comparing cruise and airline stock, this analysis notes: "Both industries face similar challenges—boom-bust cycles that are largely tied to the health of the economy, high fixed fuel costs, and the need to constantly purchase and maintain pricey assets in the form of planes and ships."

 

Also shared: "Consumers are still feeling pinched by inflation and laser-focused on value. They aren’t foregoing their vacation, but they have to get the best bang for their buck. Here, cruise lines win out when compared with hotels."

 

Many important aspects are outlined as to how consumers consider "value" with cruises versus land-based vacations, etc.  For investors, there are many similarities and differences for cruise stocks versus those with hotels, airlines, etc.  

 

Also, there is the question of whether Royal Caribbean's stock has bounced back too high and needs some "adjustment" compared to the other two major cruise companies and other travel stocks?

 

Reactions?  Future predictions?

 

Full story at:

https://www.msn.com/en-us/travel/news/travel-stocks-have-lagged-this-cruise-stock-may-have-smoother-sailing/ar-BB1qYYyo?ocid=BingNewsVerp

 

THANKS!  Enjoy!  Terry in Ohio

 

Lisbon, NWSpain, Bordeaux/Brittany: Live/blog, June 2017 from Portugal to France along scenic Atlantic Coast on the Silver Spirit.  Now at 35,912 views.  Many pictures, details for history, food, culture, etc.:

www.boards.cruisecritic.com/showthread.php?t=2511358

 

[TLCOhio]

What a dramatic period for stocks, including and especially for the cruise lines, as happened in the past two days.  Where is this leading as to the economy's direction for the next month and the later part of 2024?  

 

From the Wall Street Journal late this afternoon, they had this headline: “Nasdaq Falls Into Correction; S&P 500 Slides After Weak Jobs Report" with this sub-headline:  "Treasurys rally, while stocks around the world fall.”

 

Here are some of their reporting highlights: “A summer swoon in the stock market intensified Friday after a disappointing jobs report, renewing worries about slowing growth and sending the Nasdaq Composite into correction territory.  The jobs report showed the U.S. added 114,000 positions last month, well below expectations, while unemployment ticked up. The data spurred a rush into government bonds, with benchmark yields dropping further below 4%.  In stocks, a broad-based selloff hammered the tech-heavy Nasdaq, which fell 2.4% and entered correction territory, down at least 10% from its recent high.”   Here is the WSJ chart published with this story: 

 

Full story at:

https://www.wsj.com/livecoverage/stock-market-today-jobs-report-live-08-02-2024?mod=breakingnews

 

Below are the usual charts for the major cruise line companies during the most recent five trading days, etc.  In recent times, I cannot remember this sharp of a negative drop.  Right or wrong? 

 

Reactions and future predictions?  From this WSJ story, here was part of their bottom line summary: "This week's data has punctured some of those hopes and raised questions about whether the Federal Reserve has waited too long to trim interest rates. On Thursday, weakening employment, manufacturing and construction figures triggered a selloff in stocks, oil and other risky bets that worsened to end the week."

 

THANKS!  Enjoy!  Terry in Ohio

 

Panama Canal? Early 2017, Fort Lauderdale to San Francisco adventure through Panama Canal.  Our first stops in Colombia, Central America and Mexico, plus added time in the great Golden Gate City. Now at 33,601 views.

http://boards.cruisecritic.com/showthread.php?t=2465580

 

Thursday and Friday were not good days for the cruise ship stocks, dropping much more down, DOWN than what hit the overall slumping/sliding market.:

(Open your screen/viewer wider to see these visuals larger/better!)

 

 

 

Here is the WSJ chart for the broader, overall S&P 500 stocks during the past five days of trading.:

 

For comparison, here is the past week's chart for Viking.  Similar slide after a late July peak for this recently listed stock?:

[TLCOhio]

Last month Pizzasteve raised the important question of "Beating the market is very difficult."  Given the slide in the market on Thursday and Friday, here are a couple of articles giving more background as to the "dynamics" at play currently.  Maybe??

 

During the end of this past week, the cruise stocks fell faster and deeper than the overall market.  If you are either the Royal Caribbean CEO or CFO, how does this slide affect your future pricing and marketing for later 2024 and during 2025 to keep ships full and maximize the profit margins?  YES, advance bookings have been looking good,.  But if people and consumers in North America sense a risky, downward economic slide, they could cancel and not make those vital final payments.  Right or wrong?

 

From the Wall Street Journal this morning, they had this top headline: “Lousy Jobs Report Forces Fed to Reckon With Hard Landing" with this sub-headline: 
"Policymakers have been focused squarely on inflation. Now they need to worry about the labor market, too.”  For this story, here are a few highlights: “The script is being flipped for the U.S. economy.  For 2½ years, high inflation has drawn a nearly single-minded focus from the Federal Reserve and the White House as the nation’s foremost economic challenge.  But in the span of a week, punctuated by a surprisingly lackluster July hiring report on Friday that sent markets reeling, the labor market has become the locus of concern for economic policymakers in Washington.” 

 

From the New York Times, they had this headline: “Is the Fed Behind the Curve? As Unemployment Rises, Worries Mount" with this sub-headline: "Central bankers are preparing to cut interest rates, and are monitoring job data as they consider when and how much to lower them.”   From this NYT story, here are some of their highlights: “Federal Reserve officials held off on cutting interest rates this week because they wanted to see slightly more data to feel confident that inflation is truly coming under control. While that approach is cautious when it comes to price increases, Friday’s employment report underscored that it might be a risky one when it comes to the job market. Unemployment rose to 4.3 percent in July, up from 4.1 percent previously, as hiring slowed sharply. The labor market cracks have given sudden urgency to concerns that the Fed has waited too long to begin cutting rates — and that it might be falling behind, allowing the job market to slow in a way that will be hard to stall or reverse.  'They are absolutely behind the curve, and they need to catch up,' said Julia Coronado, founder of MacroPolicy Perspectives." 

 

As a final take-away in this Times story, the writer noted: "Once the labor market begins to slow, the cool-down can be difficult to arrest: Economists often say that the unemployment rate shoots up like a rocket and comes down like a feather.  For months now, Fed policymakers have been balancing two big risks."

 

Full stories at:

https://www.wsj.com/economy/central-banking/lousy-jobs-report-forces-fed-to-reckon-with-hard-landing-74357163?mod=hp_lead_pos1

https://www.nytimes.com/2024/08/02/business/economy/jobs-report-fed.html

 

THANKS!  Enjoy!  Terry in Ohio

 

From late 2018, see “Holy Lands, Egypt, Jordan, Oman, Dubai, Greece, etc.”, with many visuals, details and ideas for the historic and scenic Middle East. Now at 22,982 views.  Connect at:

www.boards.cruisecritic.com/topic/2607054-livenautica-greece-holy-lands-egypt-dubai-terrypix’s/

 

[TLCOhio]

In a few minutes, the NY Stock Market will open and we will see if the cruise stocks continue to slide down, down, DOWN.  From the New York Times this morning, they had this headline: “Markets Around the World Are Jolted by Fears of Slowing U.S. Growth" with this sub-headline: "A rout that began in Asia continued in Europe, and U.S. stocks are set to fall. Japan’s benchmark index logged its worst single-day point decline.”

 

Here are some of their reporting highlights: “A sell-off in markets around the world turned into a rout on Monday as investors grew panicky about signs of a slowing American economy.  The moves were a sharp reversal in major stock markets, which for much of the past year have risen to new heights, propelled by optimism about cooling inflation, solid labor markets and the promise of artificial intelligence technology.”

 

Aren't you glad you did not buy Royal Caribbean two weeks ago?

 

Full story at:

https://www.nytimes.com/2024/08/05/business/global-stocks.html

 

THANKS!  Enjoy!  Terry in Ohio

 

Summer 2019 Calgary, Jasper/Banff National Parks, Western Canada Rocky Mountaineer rail adventure, Vancouver, sailing up to Alaska on Silver Muse, post-cruise excursion to Denali, etc.  Many visuals, Our firsts in these scenic areas!  Now at 22,630 views. Live/blog: 

https://boards.cruisecritic.com/topic/2682584-live-terryohio-silver-muse-alaska-canadarockies-pix’s/

[highplanesdrifters]

The end is near. Collapse of civilization imminent.  Or maybe not. 🤣

 

Seriously though, wonder what impact the outage of numerous trading platforms is having.

[highplanesdrifters]

[TLCOhio]

10 hours ago, highplanesdrifters said:

The end is near. Collapse of civilization imminent.  Or maybe not. Seriously though, wonder what impact the outage of numerous trading platforms is having.

 

Appreciate these fun follow-ups from highplanesdrifters. Keep it coming!  Hopefully, the end is not near.  BUT, things are very rocky and impossible to predict!!  Right?

 

From the Wall Street Journal late this afternoon, here is a significant contrast: Norwegian going down today, while Royal Caribbean dropped, but ended going up.  What gives for this difference?

 

On Wednesday morning, Royal Caribbean was starting at $161.14.  By early morning today, RCL dropped to $132.99, then recovered a little.  That's a drop of nearly $30 a share in just three days.  Or, a 17.5% drop.  Norweign went from Wednesday early am at $19.32 to $14.99 early this morning.  That is a drop of 22.4% in just three trading days.  Carnival was down 2.7% today.  Dropping, but not as much as Norwegian today.  

 

THANKS!  Enjoy!  Terry in Ohio

 

Early 2020, many visuals and details from New Zealand/South Pacific in going from Auckland to French Polynesia.  This includes Bora Bora, Fiji, NZ experiences, etc:  Live/blog:

https://boards.cruisecritic.com/topic/2735732-live-terryohio-“new”-regatta-south-pacificnz-pix’s/

 

Here are today's WSJ charts for Norwegian and RCL.:

(Open your screen/viewer wider to see these visuals larger/better!)

 

 

For the broader, more overall S&P 500, here is what has happened with this key index during the past month.  Interesting slide downward??: