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StocksUpdated•Originally published 16 April 2026•Updated 17 April 2026•

1 min read

Hertz and Avis Shares Slump as Short Squeeze Momentum Stalls

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Key Facts

1Hertz Global Holdings stock dropped 7% to less than $6.50.

2Avis shares dropped similarly as the car rental short squeeze showed signs of stalling.

Hertz Global Holdings (HTZ) shares have experienced heightened volatility following a recent 50% surge driven by short squeeze dynamics and Bill Ackman’s public stake disclosure. While operational improvements such as stabilized pricing and increased direct bookings are evident, the company's ability to generate sustainable cash flow remains unproven. Liquidity is projected to dip below the $1B mark in Q2, a significant decline from approximately $1.5B at the end of Q4, despite recent financing initiatives. Avis Budget Group (CAR) also saw a decline as the technical momentum from short-covering activity began to exhaust. Market participants are now weighing these fundamental liquidity concerns against the recent speculative price action in the car rental sector.

about 2 months ago

Version History

Version 1about 2 months ago

What changed: Updated to include the 50% price surge details, Bill Ackman's involvement, and specific liquidity projections showing a drop below $1B in Q2.