JPMorgan downgraded NCLH to underweight and cut its target to $11 before earnings, expecting a decline on 2027 demand and cost uncertainty and European exposure, where approximately 85% of European travel customers are from the US; even if earnings beat, cruise and international travel demand remains unclear.

Let's talk about the downgrade of the Norwegian company. I have been downgraded by JPMorgan Chase. They downgraded its rating to "underweight" and lowered the stock price target to $11.

This was before the announcement of its profits. Therefore, they expect a drop from here. We are currently experiencing a decline of more than 5.5 percent .

The concern is about 2027, what demand will look like , and what costs will look like. They still expect earnings to come in slightly higher than Wall Street estimates, but even if earnings beat expectations , what will the situation look like from here?

Do people still take cruises? Will they be making those international trips ? This is one of the concerns here.

Norwegian Cruise Line's exposure to Europe depends on American travelers. According to JPMorgan Chase, approximately 85% of Norwegian's European travel customers come from the United States .

So , if they reduce their desire to travel to Europe, say because of cost and so on , fuel costs for example, then, you know , they will take that into account in the price that, say, if you or I wanted to take a cruise there; This will affect the price of our ticket.

Then we ask the question, will we go to the Caribbean because it might be cheaper? I don't know. So, this is one of the concerns , the cost here and what does the demand look like in Europe , Nicole?