The stock of Avis Budget Group (CAR) plummeted 50% on April 23 as a dramatic short squeeze came to a crashing end.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Trading in shares of the car rental company were halted eight times due to excessive volatility. CAR stock is now down 70% in two days as investors rush to take profits after executing a short squeeze on the shares in the latest high-profile meme stock rally.
The freefall marks a sharp reversal for CAR stock from its nearly 600% surge since late March that had been driven entirely by a short squeeze carried out by individual retail investors. Market data from S3 Partners shows that short sellers earned a collective $2.8 billion as the share price in Avis collapsed.
The Poor Shape of Avis
Retail investors took advantage of a large number of short bets against Avis Budget Group, which has struggled financially since the Covid-19 pandemic. Prior to the short squeeze, CAR stock had been trading at a multi-year low.
In 2025, Avis generated $11.65 billion in annual revenue while reporting a $889 million net loss attributable to shareholders. In 2024, the company posted a $1.8 billion loss. Additionally, Avis is heavily indebted, with $25.3 billion of debt on its books. Some analysts expect the company to go bankrupt.
Is CAR Stock a Buy?
Avis Budget’s stock has a consensus Moderate Sell rating among five analysts. That rating is based on two Hold and three Sell recommendations issued in the last three months. The average CAR price target of $115 implies 48% downside from current levels.
