Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Royal Caribbean Cruises Down After Hindenburg Says It Is Short

Published 01/06/2022, 03:01 PM
Updated 01/06/2022, 03:03 PM
© Reuters

By Sam Boughedda

Investing.com — Shares of Royal Caribbean Cruises Ltd (NYSE:RCL) are down over 3% after investment research firm Hindenburg Research released a series of tweets outlining its reasons for being short the company.

Hindenburg said it believes RCL is "one of the most dislocated "re-opening" stocks on the market today."

"The outlook for $RCL and the cruise industry is far more grim than other hospitality and leisure "post-Covid" stories," added Hindenburg.

A representative from Royal Caribbean wasn't immediately available to comment.

In further tweets, the activist short-seller said RCL now has over $26 billion in liabilities and $17 billion in net debt, the company's business fundamentals are "permanently impaired," and its operations are anything but "normal."

Hindenburg also addressed the current Conditional Sailing Order, which is set to expire on Jan. 15.

"$RCL has remained one of the clearest recent market dislocations despite its obvious business and balance sheet impairments. We are short," concluded the research firm.

Latest comments

it is a belief, among RCL short sellers, that people will not go back to cruising, or new people won't start cruising, after Covid-19. They are allowed to have their opinions, but can they back it up? I went on a RCL cruise, with some newcomers, in December, and have two more cruises, for 2022 scheduled! After the "Legionnaires disease" incident, in the 1980's, the naysayers were telling people that in-person conventions would be a thing of the past! It did not come to pass. All that happened, was hotels learned to clean better. The cruise ships are, also, doing a better job of cleaning. I am not selling my RCL stock.
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.