Why Norwegian Cruise Line Is Sailing Higher This Week
The Motley Fool
by newsfeedback@fool.com (Josh Kohn-Lindquist)February 20, 2026
AI-Generated Deep Dive Summary
Norwegian Cruise Line Holdings (NCLH) shares have surged 11% this week through Friday afternoon, driven by activist investor Elliott Management’s announcement of acquiring a 10% stake in the company. Known for its successful long-term track record under founder Paul Singer, Elliott’s involvement has sparked optimism among investors about potential improvements at the cruise line giant. The firm aims to address what it sees as excessive spending and management issues, signaling a push for change that could benefit shareholders.
Norwegian’s stock performance has been lackluster compared to its peers in recent years. While the company delivered annualized total returns of 13% from its IPO in 2013 through 2020, it has underperformed since the pandemic began, with a 35% return over the last three years. In contrast, competitors Carnival Corp. and Royal Caribbean have seen much stronger gains—181% and 333%, respectively, during the same period. Elliott’s intervention comes amid growing investor frustration with Norwegian’s recent leadership decisions, including the selection of a new Chief Executive Officer.
The activist firm’s move is significant for several reasons. Elliott has a history of successfully turning around underperforming companies by pushing for cost-cutting measures and management changes. With NCLH trading at just
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Originally published on The Motley Fool on 2/20/2026