Why This Car Rental Company's Stock Climbed 700% in One Month
7 hours ago
- #short-squeeze
- #stock-volatility
- #hedge-funds
- Avis Budget Group stock surged 700% in four weeks, hitting an all-time high of $847 before crashing 47% in one day.
- The rally was driven by a short squeeze triggered by hedge funds SRS and Pentwater owning 71% of shares, reducing public supply.
- Short sellers, who had shorted around 86% of available shares, faced massive losses estimated at $5 billion.
- Unlike meme stocks like GameStop, this squeeze is primarily institutional, not retail-driven, though retail investors joined later.
- Key factors to watch include Avis's Q1 earnings in May and a potential sale of 5 million shares that could end the squeeze.