What Happened?
Shares of global car rental company Hertz (NASDAQ:HTZ) fell 12.9% in the pre-market session after the company reported a deeply disappointing fourth-quarter performance, missing Wall Street's expectations across all key metrics. Revenue fell 7% year on year due to weaker rental demand and lower pricing. Margins were under significant strain, as the company posted a sharp net loss, with adjusted EBITDA also deep in negative territory, highlighting ongoing cost challenges. Overall, these results left little room for optimism.
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What The Market Is Telling Us
Hertz’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. But moves this big are rare even for Hertz and indicate this news significantly impacted the market’s perception of the business.
Hertz is up 4.4% since the beginning of the year, but at $3.90 per share, it is still trading 51.9% below its 52-week high of $8.09 from March 2024. Investors who bought $1,000 worth of Hertz’s shares at the IPO in June 2021 would now be looking at an investment worth $144.31.
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