Why Royal Caribbean Stock Dropped, Then Popped

Royal Caribbean stock tumbled nearly 10% in early trading after rival Carnival Corporation issued cautious Q3 guidance ($1.35 per share vs. analyst expectations of $1.42), despite beating Q2 earnings and revenue expectations. Investors initially feared Royal Caribbean might face similar headwinds, but the stock recovered by day's end as the guidance miss appeared modest (only one penny below full-year expectations).