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Royal Caribbean (RCL) Stock Is Down 15% This Week: What's Going On?
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Royal Caribbean (RCL) Stock Is Down 15% This Week: What's Going On?
Mar 7, 2025 9:05 AM

Royal Caribbean Cruises Ltd ( RCL ) shares are trading lower by 15.5% to $209.27 since Monday’s open. Shares of several travel-related companies are trading lower this week amid overall market weakness following a rise in Treasury yields. Investors may be evaluating ongoing global tension related to tariffs and conflict.

What To Know: Royal Caribbean faces unique pressures in light of the evolving tariff landscape. Rising costs on imported goods, particularly materials used in shipbuilding and maintenance, could eat into the company's profit margins.

Fuel costs, a significant operational expense for cruise lines, are also subject to volatility amid shifting geopolitical factors. If additional trade barriers emerge, the company may encounter supply chain disruptions that further impact its cost structure.

Read Also: Unemployment Rate Ticks Higher In February, US Economy Adds Fewer Jobs Than Expected

International travel demand is another critical factor. Royal Caribbean has a strong global presence, with a substantial portion of its revenue derived from international bookings. Any retaliatory tariffs or travel restrictions in key markets could dampen demand for cruise vacations, posing a challenge to the company's growth trajectory.

What Else: The broader market selloff has exacerbated RCL's stock decline. Despite reassurances from policymakers about potential exemptions and trade negotiations, investor sentiment remains fragile.

Concerns about consumer spending also linger—if economic conditions deteriorate and discretionary income shrinks, consumers may be less inclined to book cruises, potentially forcing Royal Caribbean to introduce deeper discounts or promotional offers that erode profitability.

Read Also: Nasdaq Plans 24-Hour Trading To Tap Global Investor Demand

How To Buy RCL Stock

By now you're likely curious about how to participate in the market for Royal Caribbean – 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.

In the case of Royal Caribbean, which is trading at $212.05 as of publishing time, $100 would buy you 0.47 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 $277.08 and a 52-week low of $125.06.

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