Why Royal Caribbean Cruises Ltd. (RCL) Crashed on Thursday

We recently compiled a list of the 10 Stocks Mirror Wall Street Downturn. In this article, we are going to take a look at where Royal Caribbean Cruises Ltd. (NYSE:RCL) stands against the other stocks.

Shares on Wall Street traded lower on Thursday, as investors moved to unload positions to mitigate risks from uncertainties brought about by key economic factors such as President Donald Trump’s continued tariff threats and policy shifts.

The Dow Jones dived by 1.01 percent, the S&P 500 declined 0.43 percent, while the tech-heavy Nasdaq lost 0.47 percent.

Ten companies also mirrored a broader market downturn, finishing the trading session in the red territory amid a flurry of catalysts dampening investor sentiment.

To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

An aerial view of a luxurious cruise ship, surrounded by the blue horizon.

Royal Caribbean Cruises Ltd. (NYSE:RCL)

Royal Caribbean Cruises Ltd. (NYSE:RCL) saw its share prices drop by 7.62 percent on Thursday to finish at $243.89 apiece as investors sold off positions following US President Donald Trump’s announcement that he would begin imposing taxes on cruise ship companies.

RCL’s share prices traded in line with its counterparts, namely Carnival Corp. (NYSE:CCL) and Norwegian Cruise Line Holdings (NYSE:NCLH), which both fell by 5.86 percent and 4.89 percent, respectively.

In an interview with Fox News, US Commerce Secretary Howard Lutnick announced that the three cruise ship operators, all operating under the flags of other countries, must start facing tax sanctions.

“This is going to end under Donald Trump, and those taxes are going to be paid,” he said.

Lutnick said revenues from the tariffs would support lower tax rates for Americans.

Overall RCL ranks 10th on our list of Thursday’s top losers. While we acknowledge the potential of RCL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RCL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.