RCL is effectively a meme stock. It is overvalued by at least 25% and must be in the zone for short positions. It is trading well over pre 2020 level without reasonable justification. By comparison Carnival is still trading around 1/3 of its pre 2020 levels. However, Carnival is a much larger business with similar levels of debt to revenue. I will be shorting RCL as soon as the market realises this insane valuation. In the long term, Carnival is a much better stock to own. Carnival's new port in Freeport will be opening later next year and will significantly improve revenue and margins. Carnival also restructured and removed much of the dead wood during Covid. RCL did not and are getting regular complaints about their older ships.
RCL is effectively a meme stock. It is overvalued by at least 25% and must be in the zone for short positions. It is trading well over pre 2020 level without reasonable justification. By comparison Carnival is still trading around 1/3 of its pre 2020 levels. However, Carnival is a much larger business with similar levels of debt to revenue. I will be shorting RCL as soon as the market realises this insane valuation. In the long term, Carnival is a much better stock to own. Carnival's new port in Freeport will be opening later next year and will significantly improve revenue and margins. Carnival also restructured and removed much of the dead wood during Covid. RCL did not and are getting regular complaints about their older ships.