AVIS stock goes +1300% in one year
Rental car Avis shares surged over 200% after the company announced plans to add more electric cars to its fleet. The stock turns into a meme stock, hugely supported by Wallstreetbets community and FinTwit.
Avis(CAR) unbelievable to watch.— QE Infinity 🦃 (@StealthQE4) November 2, 2021
WALLSTREETBETS is BACK BABY! 💎🙌💎🙌🚀🚀🚀
For a moment, this meme stock became one of the most valuable stocks in Russell200, multiplying in value by over 200% in one trading day, driving Dow Transports Index to the Moon!
Dow Transports Soar as Much as 14.5%, Most Ever, Amid Avis Surge— zerohedge (@zerohedge) November 2, 2021
everything is so broken
The trading of the stock had to be halted over 10 times, the market cap of $CAR exploded as well cracking up the 18 billion mark.
Avis Meme move briefly makes it most valuable in Russell2000: Shares of Avis Budget more than tripled intraday on Tue. At one moment, surge - which triggered at least 11 trading halts for vol - boosted its mkt cap by >18bn, briefly making it largest Russell2000 comp, BBG reports. pic.twitter.com/r98rLrt2hr— Holger Zschaepitz (@Schuldensuehner) November 2, 2021
Car rental stock $CAR sparked massive astonishment and trading volume after chief executive officer Joseph Ferraro announced AVIS would play a “big role” in the growth of electric cars in the U.S
Several brokerage firms issues trading restrictions on the highly volatile stock, limiting options and briefly banning short-selling.
The reported stock market reaction to $CAR's capital investment decision has been mixed: first +200% then +89%
If you're ever feeling bad about yourself, just remember that someone bought $CAR at $545.11 today.— Market Rebellion (@MarketRebels) November 3, 2021
This motive is very similar to Hertz price action, another car rental company emerged from bankruptcy and the significant decline in travel demand as a result of COVID-19, including the current and any further disruptions in airline passenger traffic.
Avis Budget presented quarterly earnings of $10.74 per share, well above the $6.52 a share consensus estimate. Revenue also exceeded Wall Street expectations. Robust demand for rental cars and higher rental rates provided a significant boost to Avis Budget’s earnings.
*HEDGE FUND SRS GAINS $5 BILLION ON THE DAY AS AVIS SKYROCKETS— zerohedge (@zerohedge) November 2, 2021
"The Americas booking patterns for the fourth quarter and holiday seasons appear robust and are currently outpacing 2019 levels. As of today, demand for Thanksgiving and Christmas appear as strong as in 2019." Avis Budget chief financial officer Brian Choi added that demand was also strengthening in Europe and starting to stabilize in Asia.