Saudi Press

Saudi Arabia and the world
Friday, Aug 21, 2026

Why Royal Caribbean, Carnival, and Norwegian Cruise Line Stocks Are Still Rocking

Why Royal Caribbean, Carnival, and Norwegian Cruise Line Stocks Are Still Rocking

Yesterday, a better-than-expected revenue report out of Royal Caribbean (NYSE:RCL) sparked a rally across the cruise line sector. The momentum is carrying into this afternoon, with Royal Caribbean shares gaining another 4.3% through 12:15 p.m. EDT, Carnival Corporation (NYSE:CCL) lagging just a bit with a 3.6% gain, and Norwegian Cruise Line Holdings (NASDAQ:NCLH) up a solid 6%.
So what


And yet, at the same time that individual investors appear to be getting more optimistic about cruise stocks, the professionals are turning conservative. In today's news, two of Wall Street's biggest names cut their price targets on Royal Caribbean.

Saying Royal Caribbean has "ample" access to capital and is likely to at least begin a "gradual" return to service before the year is out, reports TheFly.com, investment bank Stifel Nicolaus is maintaining its buy rating on Royal Caribbean shares. Stifel furthermore notes (according to StreetInsider.com) that it's hoping to see a COVID-19 vaccine begin distribution in the first quarter 2021, which could accelerate a recovery. Nevertheless, the analyst has reduced its price target from $85 a share to just $72 a share.

Investment megabanker JPMorgan is also cutting its price target on the stock, from $72 to just $67. Contradicting Stifel's optimism, JP warns that the cruise industry's recovery could be slower than previously forecast -- making Royal Caribbean shares in particular worth less than the analyst previously thought.

Now what


Granted, JPMorgan likewise believes Royal Caribbean stock will outperform the market, and continues to recommend the shares for this reason. But there seems to be reason for caution here, as even these optimistic analysts' price target cuts imply.

Already, the past two weeks have seen two of the three major publicly traded cruise lines warn that they are burning through cash at rates higher than earlier anticipated. Norwegian Cruise Line Holdings is now burning $160 million a month, and Royal Caribbean anywhere from $250 million to $290 million. Given the trend, I wouldn't be surprised if Carnival, too, reports accelerated cash burn in its next update.

Even assuming "ample" liquidity, burning more cash in the middle of a recession is not a good thing. Not to put too fine a point on it, but it's a reason for these stocks to be trading down, not up.

10 Top Stocks we like better than Royal Caribbean Cruises Ltd.

When investing geniuses David and Tom Gardner have a stock tip, it can literally pay to listen. After all, they have consistently beaten the market for over 25 years!

David and Tom just revealed what they believe are their ten Top Stocks for investors to buy right now… and Royal Caribbean Cruises Ltd. wasn't one of them! That's right -- they think these 10 stocks may be even better buys.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
Trump’s Top General Seeks an Exit Strategy From Iran War, Report Says
Brock Lesnar Retires From Wrestling, Closing a Career of Rare Athletic Range and Lasting Controversy
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Saudi Arabia, Turkey and Pakistan Sign Mutual-Defence Pact
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
A SpaceX Rocket Is About to Crash Into the Moon — and Scientists Hope to Watch
Modern Slavery Decisions Broaden the Al Fayed Inquiry’s Frame
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Arrest Warrant Issued in Lebanon for Tycoon Spotted Meeting Netanyahu in Washington
Trump says Israel ‘would not survive’ without US
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Spain Defeats Argentina in Extra Time to Win Second World Cup
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
US Retaliates Against Iran After Two American Troops Killed in Jordan
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
×