Hertz and Avis Drop 7% as Car Rental Short Squeeze Shows Signs of Stalling
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Hertz and Avis Budget Group shares dropped 7% as their short squeeze-driven rally showed signs of stalling. The stocks had surged significantly in recent weeks, with Avis rising 308% and Hertz up 80%.
Shares of Hertz and Avis Budget Group plummeted 7% as their short squeeze-driven rally lost momentum. Avis Budget Group had surged 308% and Hertz rose 80% in recent weeks. The selloff reflects disconnected valuations, with both stocks trading far above analyst targets. Avis Budget Group's fundamentals are complicated, with a massive Q4 EPS miss and a thin float contributing to the squeeze. Hertz's turnaround strategy is showing results, but its stock is still volatile. The current price of both stocks reflects something beyond their fundamental value.
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