Should I Buy Royal Caribbean Cruise (RCL)? Finance YouTuber Analysis

The analyst recommends Royal Caribbean Cruise, noting that over a third of cruise passengers are over 60, aligning with the Boomer spending theme. He prefers RCL over competitors due to its lower debt ratios, higher operating margins (30%), and positive net income.

“I do like RCL over some of the other Cruise stocks for its lower debt ratios and higher margins the operating margin here of 30% and a positive net income versus a loss per share on Carnival”

The YouTuber notes that analysts expect Royal Caribbean to be up 101% over the next year, attributing this to a projected rebound in the cruise industry. He interprets the high analyst target as a vote of confidence in the company's business model and fundamentals, suggesting good long-term return potential despite potential short-term market volatility.

“Royal Caribbean expected to be up a hundred and one percent over the next year.”

The YouTuber points out Royal Caribbean's $23 billion debt and their recent borrowing of $1.25 billion at an 11.625% interest rate, which he considers a sign of severe financial distress. He believes they are in a worse position than Carnival and may struggle to generate net income due to high interest payments.

“royal caribbean who just took out 1.25 billion dollars in debt at 11.625 percent now that's the kind of interest rate that you get before you go bankrupt”