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Avis Budget Soars to New High as Short Squeeze Deepens

Analysts warn a vanishing float plus heavy shorting are driving a technical spike over shaky results.

Overview

  • Avis Budget shares set fresh records Tuesday after a 23% jump Monday, pushing April gains to well over 500%.
  • Data firm Ortex estimated 86.2% of the shares available to trade were sold short, which raises the odds of forced buying.
  • Filings show SRS Investment Management and Pentwater Capital control about 71% of outstanding shares, leaving little stock for trading.
  • Reuters calculated short sellers are down about $4.09 billion for the month, including roughly $1.01 billion lost on Monday alone.
  • Wall Street cautions that recent GAAP losses and a roughly $518 million write-down on the U.S. EV fleet do not support the new price levels.