1 00:00:02,520 --> 00:00:09,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:17,160 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:18,000 --> 00:00:20,320 Speaker 1: I'm Tim Stadebeck along with Carol Masser. Let's take a 5 00:00:20,320 --> 00:00:22,400 Speaker 1: look at some stocks on the move. One name that 6 00:00:22,520 --> 00:00:25,279 Speaker 1: is partaking into this rally as Carnival. We've got with 7 00:00:25,360 --> 00:00:28,760 Speaker 1: us Brian Ager, senior gaming and lodging analysts for Bloomberg Intelligence. 8 00:00:28,960 --> 00:00:33,080 Speaker 1: It's not just Carnival, it's also Norwegian Roal, Caribbean Viking 9 00:00:33,159 --> 00:00:36,159 Speaker 1: also higher. But it's because of news from Carnival. What happened, Yeah, 10 00:00:36,159 --> 00:00:36,640 Speaker 1: they had Ernie. 11 00:00:36,760 --> 00:00:39,680 Speaker 3: Let's note about Carnivals. They last reported their March quarter 12 00:00:39,800 --> 00:00:43,920 Speaker 3: in again February Recorder in March, so that pre dated 13 00:00:44,040 --> 00:00:46,800 Speaker 3: Liberation Day. So this is actually their first earnings print 14 00:00:47,120 --> 00:00:49,240 Speaker 3: since that tariff effect, and one of the rivals in 15 00:00:49,280 --> 00:00:53,519 Speaker 3: Norwegian cruise lines did slightly lower revenue guild guidance for 16 00:00:53,560 --> 00:00:56,840 Speaker 3: twenty twenty five when they reported in white April because 17 00:00:56,840 --> 00:01:00,480 Speaker 3: of that initial tariff effect and the concerns about the economy. 18 00:01:00,800 --> 00:01:03,000 Speaker 3: So the good news for Carnivals they maintained their second 19 00:01:03,080 --> 00:01:06,800 Speaker 3: f outlook actually slightly raised their full year view, so 20 00:01:06,880 --> 00:01:11,160 Speaker 3: they did not appear to experience any lingering effects of 21 00:01:11,280 --> 00:01:13,440 Speaker 3: charifs and economic worries on their bookings. 22 00:01:13,760 --> 00:01:17,319 Speaker 4: Is it right smart by investors, Brian that when one 23 00:01:17,440 --> 00:01:19,600 Speaker 4: cruise company comes out and says something that the rest 24 00:01:19,600 --> 00:01:21,039 Speaker 4: all right tired? 25 00:01:21,200 --> 00:01:22,240 Speaker 1: What is it rising? 26 00:01:23,480 --> 00:01:23,720 Speaker 2: Yeah? 27 00:01:23,760 --> 00:01:26,640 Speaker 4: Exactly, thank you so much exactly, because then are they 28 00:01:26,680 --> 00:01:27,440 Speaker 4: all the same that. 29 00:01:27,400 --> 00:01:29,720 Speaker 3: We can do that, it's reasonable to assume that to 30 00:01:29,840 --> 00:01:32,240 Speaker 3: arch the great thing is Norwegian and Royal had a 31 00:01:32,319 --> 00:01:35,720 Speaker 3: chance to speak to the street back in wait April, 32 00:01:36,120 --> 00:01:39,160 Speaker 3: right after this terriff, anxiety really began to build up. 33 00:01:39,520 --> 00:01:44,720 Speaker 3: Carnival hadn't really spoken about their earnings profile since late March, 34 00:01:44,920 --> 00:01:47,240 Speaker 3: so this is all kind of like New Territory. And 35 00:01:47,280 --> 00:01:49,920 Speaker 3: the fact that they reaffirmed their outlook rather than lowering it, 36 00:01:50,000 --> 00:01:52,720 Speaker 3: I think was why the stocks reacted subuoyantly. 37 00:01:53,120 --> 00:01:54,840 Speaker 1: How do you look at these cruise companies because you 38 00:01:54,920 --> 00:01:59,160 Speaker 1: also cover gaming, you cover lodging, so you have an 39 00:01:59,240 --> 00:02:02,040 Speaker 1: understanding of the whole ecosystem. When we talked to the 40 00:02:02,080 --> 00:02:05,240 Speaker 1: folks at these companies and we asked them specifically about 41 00:02:05,240 --> 00:02:08,799 Speaker 1: the health of the consumer, they love to say we're 42 00:02:08,880 --> 00:02:13,200 Speaker 1: such a good value. We are fine in good times 43 00:02:13,560 --> 00:02:16,800 Speaker 1: and in not so good times because consumers find us 44 00:02:16,800 --> 00:02:17,440 Speaker 1: a good value. 45 00:02:17,680 --> 00:02:19,519 Speaker 3: Is that the case. I think Cardivally even said on 46 00:02:19,560 --> 00:02:23,280 Speaker 3: their cult we're so cheap it's stupid that really, I mean, 47 00:02:23,320 --> 00:02:25,359 Speaker 3: it's an affordable vacation when you wind up on other 48 00:02:25,480 --> 00:02:28,240 Speaker 3: types of vacations. But they're also a beneficiary of the 49 00:02:28,240 --> 00:02:31,320 Speaker 3: fact that leisure discretion or travel has been pretty resilient. 50 00:02:31,480 --> 00:02:34,480 Speaker 3: We've been waiting for some shoe to drop in terms 51 00:02:34,480 --> 00:02:37,240 Speaker 3: of the impact of teriff concerns, but we thought that. 52 00:02:37,360 --> 00:02:39,560 Speaker 1: Shoe dropped a few months ago when all the airlines 53 00:02:39,600 --> 00:02:43,360 Speaker 1: pulled their guidance and United gave two different setic guidance. 54 00:02:43,040 --> 00:02:46,080 Speaker 3: Did a little bit. I think what Cardival said specifically 55 00:02:46,120 --> 00:02:49,720 Speaker 3: about economic concerns is April their bookings did weaken a 56 00:02:49,760 --> 00:02:52,800 Speaker 3: little bit, consistent with what we saw from Norwegian, but 57 00:02:53,360 --> 00:02:56,840 Speaker 3: into May and the first half of June they kind 58 00:02:56,840 --> 00:03:00,480 Speaker 3: of came back. So there wasn't an early react where 59 00:03:00,480 --> 00:03:05,200 Speaker 3: people consumers hold in their spending a little bit, or 60 00:03:05,200 --> 00:03:07,840 Speaker 3: at least where menimok cautious. That seems to at least 61 00:03:07,880 --> 00:03:09,480 Speaker 3: for now, have re seeded. 62 00:03:09,560 --> 00:03:13,359 Speaker 4: Awesome, Brian, these guys, I mean people book out cruises 63 00:03:13,360 --> 00:03:15,519 Speaker 4: sometimes a year or two years in advance, And is 64 00:03:15,560 --> 00:03:17,640 Speaker 4: there anything that we got in terms of longer term outlook. 65 00:03:17,680 --> 00:03:19,720 Speaker 4: I mean, they can cancel, we know that. But I 66 00:03:19,760 --> 00:03:22,799 Speaker 4: always like talking to these folks because they do have 67 00:03:22,919 --> 00:03:24,720 Speaker 4: bookings that go kind of further out. 68 00:03:24,800 --> 00:03:28,160 Speaker 3: YEP. So they're you know, ninety percent plus booked effectively 69 00:03:28,240 --> 00:03:31,120 Speaker 3: for this year going into next year. It's a little 70 00:03:31,120 --> 00:03:34,560 Speaker 3: too early to tell because the big bookings season for 71 00:03:34,680 --> 00:03:37,360 Speaker 3: cruise lint is typically first couple months of the counter year, 72 00:03:37,720 --> 00:03:40,520 Speaker 3: so we don't know yet, but initial indications or bookings 73 00:03:40,520 --> 00:03:41,000 Speaker 3: are strong. 74 00:03:42,120 --> 00:03:46,240 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 75 00:03:46,320 --> 00:03:49,080 Speaker 2: us throughout the day for the latest roundup of companies 76 00:03:49,120 --> 00:03:52,160 Speaker 2: making news on Wall Street and for the latest market 77 00:03:52,200 --> 00:03:56,560 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 78 00:03:56,600 --> 00:03:59,840 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 79 00:03:59,880 --> 00:04:01,360 Speaker 2: the Bloomberg Business app.