Avis Budget (CAR) Skyrocket 250% on War-Driven Frenzy

Avis Budget Group Inc. (NASDAQ:CAR) is one of the 11 Stocks With 3x-5x Returns This Year.

Avis Budget has seen its stock price soar by 250 percent year-to-date—at $448.98 versus only $128.32 on December 31—primarily driven by a short squeeze in its stock amid geopolitical developments in the Middle East.

Much of the rally was seen earlier this week, amplified by the stock’s short interest, which forced bearish investors to rapidly cover positions as prices climbed.

Photo by Vladimir Srajber on Pexels

It is also worth noting that Avis Budget Group Inc. (NASDAQ:CAR) is a highly shorted company, with at least 20 percent of its float sold short, giving room for potential breakout rallies.

Short-selling aside, the rally can also be attributed to the uncertainties in the ongoing peace talks between the US and Iran, whose war over the past few weeks has sent global crude oil prices spiking.

This, on the other hand, sparked good news for used car and car rental stocks like Avis Budget Group Inc. (NASDAQ:CAR) and Hertz Global Holdings, as travelers look for alternative modes of transportation to mitigate risks from the oil spikes and uncertainties.

Last year, the company narrowed its net loss by 51 percent to $889 million from $1.82 billion in 2024. Revenues decreased by 1.6 percent to $11.6 billion from $11.79 billion year-on-year.

In the fourth quarter alone, Avis Budget Group Inc. (NASDAQ:CAR) incurred an attributable net loss of $747 million, or 61.8 percent lower than the $1.958 billion year-on-year. Revenues dipped 1.7 percent to $2.66 billion from $2.7 billion year-on-year.

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