In This Article:
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.
The shares closed the day at $3.90, down 8.6% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hertz? Access our full analysis report here, it’s free.
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 4.6% since the beginning of the year, but at $3.90 per share, it is still trading 51.8% 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 $144.50.
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