RT Sawyer Merritt (@SawyerMerritt)A Royal Caribbean cruise ship is taking its @Starlink connectivity to the limit after installing equipment capable of delivering up to 10Gbps in satellite internet.The Star of Seas, one of the largest cruise ships in the world, has been outfitted with a Starlink Community Gateway, which can deliver "10Gbps of symmetrical throughput," meaning it can supply up to 10Gbps for both downloads and uploads. ...

Connectivity Performance - Starlink's Community Gateway on Royal Caribbean's Star of the Seas delivers 10 Gbps of symmetrical throughput [1] - The symmetrical throughput ensures high-speed connectivity for passengers and crew at sea [1]

Group 1 - Joby Aviation and Uber Technologies are expanding their global partnership, with Joby set to integrate Blade's air mobility services into the Uber app as early as next year [1] - Joby recently acquired Blade Air Mobility, enhancing its service offerings in the air taxi market [1] Group 2 - Uber stock is showing strength, with potential strategies for investors to either maintain a premium or purchase shares at a discount [2] - The overall market is experiencing fluctuations, with the S&P 500 extending its losing streak and significant events such as Jerome Powell's speech on the horizon [4] - Uber has posted a Q2 sales beat and announced a $20 billion buyback plan, although its stock has faced challenges amid ongoing debates regarding robotaxi services [4]

Time now for money, power, politics. And tonight, we start with this headline from the New York Times. Quote, "Trump is winning his trade war. What will it mean for the actual economy?" We've seen him use his leverage to announce new trade deals around the world that include big tariff rates, levels that would have seemed unimaginable 6 months ago.Let's be clear, Trump is remaking the world economy around tariffs, something he has been talking about for more than a decade. He's defying expectations. And rig ...

The CDC investigating a stomach bug that broke out on a Royal Caribbean cruise headed from LA to Mexico with more than 140 passengers sick. Uh, norovirus is typically behind cruise ship outbreaks. Royal Caribbean says the health of its passengers is a top concern and it promises it has rigorous cleaning procedures. ...

Industry Performance - The cruising industry is experiencing strong performance, with companies achieving record revenue and earnings [1] - Passionate cruisers contribute to the strong demand for cruising [2] Market Dynamics - Cruise companies are drawn to Galveston, Texas due to its access to the Western Caribbean and proximity to fast-growing cities like San Antonio, Houston, and Dallas, creating a drive-in market [3] - Galveston hosts nearly 2 million cruisers annually [2] Financial Impact - Cruise ships account for approximately 65% of the port's revenue [4] - Cruise-related activities contribute almost $900 million annually to the local economy [4] - An extra billion dollars for 50,000 people brings significant economic benefits [5]

A new cruise passenger tax will go into effect in Mexico on July 1 as the government negotiates with Royal Caribbean and other companies https://t.co/lcbwstMjwf ...

A new cruise passenger tax will go into effect in Mexico on July 1 as the government negotiates with Royal Caribbean and other companies https://t.co/s1Yn1cZfax ...

Core Viewpoint - Norwegian Cruise Line's stock has experienced a significant decline of 33% year-to-date, contrasting with the S&P 500's minor drop of 0.6%, indicating a broader downturn in the cruise sector [1] Financial Performance - Norwegian Cruise Line reported mixed Q1 results with an adjusted EPS of $0.07, below the consensus estimate of $0.09, and revenue of $2.13 billion, slightly under the forecast of $2.15 billion. The GAAP net loss was $40.3 million [2] - The occupancy rate was 101.5%, meeting guidance but showing a year-over-year decline due to increased dry-dock activities. Despite some "softening" in forward bookings, advance ticket sales rose 2.6% year-over-year to $3.9 billion, indicating ongoing demand [2] Valuation Comparison - NCLH stock appears inexpensive relative to the broader market, with a price-to-sales (P/S) ratio of 0.8 compared to 2.8 for the S&P 500, a price-to-free cash flow (P/FCF) ratio of 3.9 against 17.6 for the S&P 500, and a price-to-earnings (P/E) ratio of 10.5 compared to 24.5 for the benchmark [4][7] Revenue Growth - Norwegian Cruise Line's revenues increased by 10.9% from $8.5 billion to $9.5 billion over the past 12 months, while quarterly revenues dipped 3% to $2.1 billion compared to $2.2 billion a year earlier [5] Profitability Metrics - The company's operating income over the last four quarters was $1.5 billion, resulting in an operating margin of 15.5%, which is higher than the S&P 500's 13.1%. The operating cash flow during this period was $2.0 billion, indicating an OCF margin of 21.6% compared to 15.7% for the S&P 500 [6] Financial Stability - Norwegian Cruise Line's balance sheet is characterized as very weak, with total debt of $13 billion against a market capitalization of $7.6 billion, leading to a poor debt-to-equity ratio of 163.6% compared to 21.5% for the S&P 500. Cash and cash equivalents amount to $185 million of $21 billion in total assets, resulting in a cash-to-assets ratio of 1.0% versus 15.0% for the S&P 500 [9][8] Downturn Resilience - NCLH stock has historically performed worse than the S&P 500 during downturns, with a decline of 69.2% from a peak of $33.71 in June 2021 to $10.38 in June 2022, compared to a 25.4% decline for the S&P 500. During the COVID-19 pandemic, the stock fell 87.0% from a high of $59.65 in January 2020 to $7.77 in March 2020, while the S&P 500 saw a decline of 33.9% [10][11] Overall Assessment - The overall assessment of Norwegian Cruise Line indicates very weak operating performance and financial condition, with growth rated as very strong, profitability as neutral, financial stability as extremely weak, and downturn resilience as extremely weak [12][14]

Core Viewpoint - The cruise industry is facing mixed signals, with Carnival's performance uncertain compared to competitors Royal Caribbean and Norwegian Cruise Line Holdings [1][3][12] Group 1: Industry Performance - Royal Caribbean raised its guidance in its latest earnings report, while Norwegian reduced its guidance on net yield growth, indicating potential challenges in revenue generation [2] - Carnival holds a significant market share, with approximately 42% of all cruise passengers sailing on its ships, which positions it as an industry leader [7] - Cabin availability has been limited, with Carnival booking 103% of its capacity in the first quarter of fiscal 2025, allowing it to command higher prices [8] Group 2: Financial Health - Carnival has approximately $27 billion in total debt, a significant burden given its book value of $9.2 billion, which impacts its ability to service and pay down debt [4] - The company has made progress in debt reduction, paying off over $3 billion in fiscal 2024 and another $500 million in the first quarter, indicating it can manage current debt without refinancing [10] - In the fiscal first quarter, Carnival reported revenue of $5.8 billion, a 7% increase year-over-year, despite a quarterly loss of $78 million, suggesting that the loss may be temporary [9] Group 3: Future Outlook - Carnival plans to launch new ships, Festivale in 2027 and Tropicale in 2028, which could enhance its revenue if demand remains strong [5] - The company may need to slow its expansion if economic conditions force it to lower prices to attract customers, but it has demonstrated resilience in maintaining market leadership and expanding its fleet [13] - The stock has increased by around 20% over the last year but has fallen about 35% since late January, resulting in a price-to-earnings ratio of 12, the lowest since returning to profitability [11]