Norwegian Cruise Stock Surges After Elliott Takes 10% Stake, Pushes For Board Overhaul

Norwegian Cruise is seeing pressure from Elliott to bring changes to the board and management in an attempt to compete better.

• The activist investor, in a letter to the company, said that the missteps have led to profound undervaluation and substantial untapped potential.
• Bloomberg News reported that Elliott noted questionable spending, including flying guests to Reykjavik, Iceland, and a Katy Perry concert.
• Elliott noted that Norwegian shares are among the worst-performing in the S&P 500 over the last five years.

Norwegian Cruise Line Holdings shares surged more than 12% on Wednesday, marking their best single-day gain in over 10 months, after Elliott Investment Management disclosed a stake in the company and criticized what it described as strategic and execution missteps amid strong industry demand.

In a letter to the company, the activist investor said those missteps have led to a "profound undervaluation" and significant untapped potential. Elliott disclosed a stake of more than 10% in the cruise operator.

The firm called for changes to the board, including the addition of truly independent directors with relevant industry and operational expertise. It said the revamped board must ensure the right executive leadership is in place to execute an ambitious turnaround.

The Katy Perry Angle

Bloomberg News reported that Elliott noted questionable spending, including flying guests to Reykjavik, Iceland; a concert by Katy Perry; and curating fine art experiences at sea.

NCLH stock fell 13.3% in 2025, while Carnival Corp shares and Royal Caribbean’s stock witnessed a 23% jump during the same period.

Elliott’s Ask From NCLH

The activist investor noted that Norwegian shares are among the worst-performing in the S&P 500 over the last five years. Elliott said that despite Norwegian being the first cruise line to acquire a private island, its leadership inexplicably neglected this transformative opportunity, even as private island destinations became a key driver of customer demand and returns across the industry.

“Belated attempts to course-correct have been rushed and mismanaged,” the activist investor said. The investor said that a lack of cost discipline became endemic across the organization, and unit costs have risen substantially over the past decade.

Elliott said that a comprehensive Board change, management review, and new business plan are needed. The activist investor said it believes these actions create a clear path for the stock to reach $56 per share, 159% above current levels.

What Is Retail Thinking?

Retail sentiment on Norwegian Cruise jumped to ‘extremely bullish’ from ‘bearish’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A bullish user on the platform said it was a “great start to the week.”

In the last 24 hours, retail message volumes on Stocktwits jumped more than 1,771%, and over the past year, the ticker saw a 2% spike in followers on the platform.

Another bullish user on Stocktwits said that the Elliott news was good for investors.

Shares of Norwegian Cruise have fallen more than 18% in the last 12 months.

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