{"id":117111,"date":"2026-04-23T11:36:21","date_gmt":"2026-04-23T15:36:21","guid":{"rendered":"https:\/\/www.businessupturn.com\/usa\/?p=117111"},"modified":"2026-04-23T13:57:30","modified_gmt":"2026-04-23T17:57:30","slug":"avis-budget-stock-crashes-57-percent-in-2-days-after-600-percent-rally","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/avis-budget-stock-crashes-57-percent-in-2-days-after-600-percent-rally\/117111\/","title":{"rendered":"Avis Budget stock crashes 57% in 2 days after 600 percent rally"},"content":{"rendered":"

Shares of Avis Budget Group<\/span><\/span> saw a massive fall on Thursday. The stock dropped over 42 percent in a single day. Trading was halted 8 times due to extreme volatility. This comes after a sharp 38 percent fall the previous day.<\/p>\n

The total decline in 2 days now stands above 57 percent. The crash marks a sudden reversal after a huge 600 percent rally since late March.<\/p>\n

Short squeeze reversal wipes gains as short sellers make 2.8 billion dollars<\/h2>\n

The earlier rally was driven by a short squeeze. That momentum has now completely reversed.<\/p>\n

Short sellers made strong gains during the fall. They earned 2.8 billion dollars in one day. This helped recover the 2.7 billion dollars they had lost in the previous 3 days.<\/p>\n

The sharp swings show how unstable the stock has become. Fast buying turned into aggressive selling within days.<\/p>\n

Financial concerns rise as debt hits 25.3 billion dollars and losses continue<\/h2>\n

Analysts are raising concerns about the company\u2019s financial health.<\/p>\n

JPMorgan<\/span><\/span> downgraded the stock to Underweight. The price target was raised to 165 dollars from 123 dollars. But the downgrade shows caution.<\/p>\n

Analysts believe the stock price is far above its actual value. Even strong growth assumptions do not justify the rally.<\/p>\n

Financial data adds more pressure. The company reported 11.65 billion dollars in revenue. But it posted a net loss of 889 million dollars in 2025. This follows a bigger loss of 1.8 billion dollars in 2024.<\/p>\n

Total debt stands at 25.3 billion dollars. Stockholders\u2019 equity is negative at 3.1 billion dollars. The company earns only 0.56 dollars for every 1 dollar of interest. This shows weak ability to cover debt costs.<\/p>\n

*]:pointer-events-auto [content-visibility:auto] supports-[content-visibility:auto]:[contain-intrinsic-size:auto_100lvh] R6Vx5W_threadScrollVars scroll-mb-[calc(var(--scroll-root-safe-area-inset-bottom,0px)+var(--thread-response-height))] scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" data-turn-id=\"request-WEB:a8d8d8d4-eaf3-4ada-a054-16d8fe3268ef-6\" data-testid=\"conversation-turn-14\" data-scroll-anchor=\"false\" data-turn=\"assistant\">\n
\n
\n
\n
\n
\n
\n

Institutional bets exceed 100 percent as earnings report set for April 29<\/h2>\n

Large investors have played a major role in the stock movement.<\/p>\n

SRS Investment Management<\/span><\/span> and Pentwater Capital Management<\/span><\/span> built combined exposure of over 100 percent of shares.<\/p>\n

These positions added fuel to the rally and the crash.<\/p>\n

The company will release its next earnings on April 29. Investors are now watching closely.<\/p>\n

The recent crash highlights one clear point. The rally was not supported by strong fundamentals. The correction came fast and hard.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Shares of Avis Budget Group saw a massive fall on Thursday. The stock dropped over 42 percent in a single\u2026<\/p>\n","protected":false},"author":294,"featured_media":117114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[16912,36186],"class_list":["post-117111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-markets","tag-avis","tag-avis-budget"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/117111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/294"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=117111"}],"version-history":[{"count":3,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/117111\/revisions"}],"predecessor-version":[{"id":117116,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/117111\/revisions\/117116"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/117114"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=117111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=117111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=117111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}