Important points
CNBC’s Jim Cramer said Monday that the drop in Viking Holdings shares has opened up an attractive entry point for investors waiting to buy the soaring Cruise stock. “I think it’s crazy that people are selling stuff like this,” the “Mad Money” host said. “I’m telling you to buy stocks in line with the recent downturn.” Viking is known for its river cruises, but it also does ocean voyages. Viking stock has fallen nearly 20% from its all-time high of $108 on Aug. 5. The decline reflects broader pressure on cruise stocks from rising oil prices and geopolitical uncertainty, in addition to Viking’s specific concerns. Historically low water levels on the Danube and Rhine rivers forced Viking to make changes to some of its itineraries. In response, the airline has issued vouchers to certain affected passengers, with redemption costs expected to run from 2027 to 2028. Cramer said investors are placing too much weight on these temporary disruptions, even though the underlying business remains strong. Citing the company’s strong bookings and premium customer base, he argued, “I think they’re great and this stock is definitely worth owning.” “What can I say? Buy on the spur of the moment,” he advised. Viking beat Wall Street’s profit and revenue expectations in its second quarter report on Aug. 19. Kramer said the company’s forward bookings are even more encouraging. As of August 9, Viking had sold 96% of its 2026 core production capacity. It has already sold 53% of its production capacity in 2027, with advance bookings of $4.71 billion. This is 21% more than sales in 2026 at the same point last year. “These are all tremendous numbers,” Kramer said. He also supports Viking’s decision to compensate passengers affected by the river disruption, viewing the cost as an investment to maintain the customer loyalty that helped differentiate the brand. Viking primarily targets affluent and older travelers and offers an extensive portfolio of river cruises, which sets it apart from its mass-market competitors. Cramer said the company’s premium customer base should make it more resilient even if inflation and rising energy prices weigh on discretionary spending. The sale reduced Viking’s valuation to about 22 times its expected earnings per share over the next 12 months. That’s still a high premium compared to other major cruise lines, but Kramer said it’s justified given Viking’s superior growth and profitability profile and strong balance sheet. Mr. Kramer has backed Viking since shortly after its initial public offering in May 2024, and the stock price rose more than 8% to just over $26. After the stock finally rose to an intraday high of $110 earlier this month, the “Mad Money” host said the recent decline looks attractive. Subscribe to CNBC Investing Club today to follow Jim Cramer’s every move in the markets. Questions about Cramer’s disclaimer? Call Cramer: 1-800-743-CNBC Want a deeper look into Cramer’s world? Punch him! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Have questions, comments, or suggestions about the Mad Money website? madcap@cnbc.com
