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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.

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Trump’s $500B AI Investment: One Small Cap Stock With Big Potential in 2025

President Trump just announced a massive $500 billion investment into project “Stargate”, a joint venture between OpenAI, SoftBank, and Oracle to build artificial intelligence infrastructure within the United States over the next four years. (1)  The AI frenzy is in full swing, but beneath the surface lays one critical piece with a massive opportunity for investors reading this now: Copper.

What does Trump’s $500B investment into AI infrastructure have to do with copper one may ask? Every AI data center requires 60,000 pounds of copper – equivalent to 30 tons … With 100-150 grams of copper per Nividia H100, This represents a 4-6x increase over traditional data centers.

Analysts at Goldman Sachs predict “AI will add 1 million metric tons of annual copper demand by 2030”. (2) Compounding on top of the already crippling Copper Deficit, AI Data Centres are set to add another 1 Million tons to the projected 10 million ton supply deficit looming in 2030. With no major new copper mines being developed, and one of the world’s largest copper mines recently going out of production (First Quantum’s Cobre Panama mine) (3), BHP has warned of a “critically constrained” market. Bloomberg analysts forecast that copper prices could exceed $12,000 per ton as shortages intensify (4).

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