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Cramer On Cruise Stocks: 'The Robinhood People Were Right'

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Cramer On Cruise Stocks: 'The Robinhood People Were Right'

CNBC's Jim Cramer discussed why a commercial he saw for Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) might warrant a victory lap by young investors. 

What Happened: Norwegian has confirmed it won't set sail in the U.S. in the first few months of 2021, but that isn't stopping the company from advertising its cruises during NFL games.

The Norwegian commercials feature people without masks having a "fabulous time" and enjoying themselves, Cramer said on CNBC's "Squawk on the Street."

This suggests that there is still demand for cruises and proves "the Robinhood people were right," he said. 

Younger and millennial investors were known for scooping up cruise stocks during the earlier days of the pandemic.

This move was considered foolish by some experts, who believed at the time the travel and leisure industry would take years to recover, if at all. 

"This younger generation says, wait a second — people are going to cruise again, they are going to get a vaccine," Cramer said.

By contrast, analysts and media pundits were "negative" on the sector, the CNBC host said. 

Why It's Important: Norwegian's stock by default should have fallen, as the company was active in listing new shares to raise capital, Cramer said. While the younger generation of investors may not understand this dynamic, he said they were optimistic cruise operators would figure out a way to survive the pandemic.

What's Next: Norwegian has announced a new initiative to keep its guests safe. The company will install air purification and disinfection systems across all of its 28-ship fleet.

"They are going to figure it out," Cramer said.

 

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