Why Carnival, Royal Caribbean, and Norwegian Cruise Line Stocks Surged Today

Cruise ship stocks rallied on Friday, largely recovering from sharp losses on Thursday. Norwegian Cruise Line Holdings (NYSE: NCLH), Carnival (NYSE: CCL) (NYSE: CUK), and Royal Caribbean (NYSE: RCL) saw their stock prices rise by 19%, 15%, and 12%, respectively.

There wasn't much in the way of positive news for the cruise industry to explain the sharp upward move. Some say it's an army of new day traders on platforms like Robinhood, who are piling into cruise ship stocks and helping to drive their share prices higher. Others say performance-chasing hedge funds are adding to the buying frenzy.

And still others, like CNBC's Jim Cramer, think professional traders might be bidding up the prices of beaten-down stocks in the hope of selling them at even higher prices to Robinhood traders later in the day.

Source Fool.com