Markets stabilise after DeepSeek sell-off, Boeing shares up despite huge loss and strong Royal Caribbean update sees cruise liners rally

“After yesterday’s tech mauling markets have looked a lot healthier today, with modest gains made by some of yesterday’s biggest losers including Nvidia and Microsoft,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“That’s not to say investors aren’t still deeply concerned about the amount of cash being spent on the pursuit of AI gains and as those earnings updates hit screens there will be a lot of eyes taking a hard look at how much additional spend is being earmarked versus how much it’s delivering to the bottom line.

“Growth stocks have by their nature required investors to accept they’ll get their jam tomorrow and that’s great as long as the jam is plentiful and juicy – and isn’t being offered at half the price elsewhere.

“Donald Trump had the right of it – the rout gave the big boys a wake-up call – but the president likes US stock markets to march to his tune so there have to be questions about whether OpenAI’s announcement of a ChatGPT for government agencies was rushed through.

“That’s where yesterday’s sell-off feels a bit overdone. There’s no denying it’s a game changer if DeepSeek really has produced its model for the pennies it says, but it doesn’t address issues of data protection that have mired TikTok in legal barbed wire.

“AI has such potential for good and ill, and governments, regulators and consumers will all have to navigate their way through this new era of tech.”

Boeing

“There was no way for Boeing’s CEO to dress up the aircraft maker’s results – to put it bluntly the past year has been turbulent.

“But shares were up following the full-year results which reported the second biggest annual loss in its history, only surpassed by 2020 when planes were grounded and the world seemed to stop for a beat.

“The strikes which occurred just as the company was trying to turn things around cost more than just billions of dollars. They created dissatisfaction with the brand from those airlines that had stuck with Boeing despite a loss of public trust.

“Kelly Ortberg has had his work cut out for him, but today’s share price gains suggest investors are prepared to give him time to make good on his turnaround plan and accept that changes have been made at every level of the business.”

Royal Caribbean Cruises

“Shares in cruise operators were up on both sides of the Atlantic after the world’s second largest operator announced that 2024 earnings had surpassed pre-pandemic levels.

“Royal Caribbean Cruises is bullish about its outlook for the new year as customers are prepared to spend more for the luxury of unpacking once but still being able to enjoy the trip of a lifetime.

“Cruising has come a long way and whilst it typically appeals to that savings rich, older generation, it’s also grabbing the attention of younger travellers, with the sector pulling out all the stops to draw them in.

“Although consumers have cut back, especially on big-ticket items, travel is the one area people are still prepared to spend money on. They want the experiences and moments they can share on social media and relive with family and friends.

“Cruise operators fought their way back from the Covid years and they’re determined to make the most of their moment in the sun with new destinations and services wrapped up in one convenient package.”

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