Viking Holdings has seen its stock price drop nearly 20% from an all-time high of $108 on August 5, largely due to broader pressures on cruise stocks from rising oil prices and geopolitical uncertainties, as well as specific issues like low water levels affecting river cruise itineraries.
Cramer argues that the market is overreacting to these temporary disruptions, emphasizing that Viking's underlying business remains robust, with strong bookings and a premium customer base. He noted that as of August 9, Viking had sold 96% of its core capacity for 2026 and 53% for 2027, with advance bookings totaling $4.71 billion, a 21% increase from the previous year.
Cramer supports Viking's decision to issue vouchers to affected passengers, viewing it as a strategic investment in customer loyalty. Despite a valuation of about 22 times the next 12 months' earnings, Cramer believes this premium is justified given Viking's growth potential and profitability.
He has been a proponent of Viking since its IPO in May 2024, suggesting that the recent decline presents a favorable entry point for investors