Forget AI and EVs; 2 cruise lines rank among top 5 stocks in S&P 500

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Forget AI and self-driving cars - 2 of the S&P 500's 5 best-performing stocks this year are cruise lines

For example, Royal Caribbean's revenue nearly tripled year-on-year to $2.9 billion in the first quarter as both ticket and onboard sales soared. As a result, the operator swung from a nearly $900 million operating loss to an almost $300 million profit, and more than doubled its full-year growth expectations to as high as 7.75%.

Meanwhile, Carnival's revenue jumped by about 230% to over $9 billion in the first six months of this year, fueling a $120 million operating profit — a sharp contrast to its $1.5 billion operating loss in the same period of 2022. The company raked in record second-quarter revenue, and passenger bookings for future trips hit an all-time high.

Royal Caribbean and Carnival are riding high on a tidal wave of demand, and their stock prices are still well below pre-pandemic levels. Their fortunes could turn if stubborn inflation, higher interest rates, and a looming recession lead consumers to pull back on spending – but for now, they're holding their own against some of the most buzzy stocks on the market.

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