Royal Caribbean Cruises (NYSE: RCL) saw its stock surge 5.95% intraday on Thursday, driven by a combination of aggressive shareholder returns and favorable macroeconomic conditions.
The cruise operator announced a new $2 billion share repurchase program, following the completion of a prior $1 billion buyback. Since July 2024, the company has returned $1.9 billion to investors, reflecting its strong financial position and investment-grade balance sheet.
Additionally, the Federal Reserve's decision to cut interest rates by 25 basis points provided a tailwind for the stock. The rate reduction lowers borrowing costs for the capital-intensive cruise industry and boosts consumer discretionary spending, further supporting leisure travel demand.
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