Avis Budget Stock Surges 450% on Short Squeeze

Avis Budget Group Inc.'s stock surged to a record high on Wednesday, climbing as much as 18 percent in early trading to $847 before reversing course and falling nearly 50 percent, capping a dramatic rally that has quintupled shares in recent weeks amid one of the most intense short squeezes in recent market history.

The NASDAQ-listed car rental company's shares, trading under the ticker CAR, began the year around $128 and traded near $100 in late March. By Tuesday's close, they had reached $714, reflecting a year-to-date gain exceeding 450 percent. The volatility underscores a classic short squeeze, where high short interest—reaching 86 percent of the available float as of this week, according to data firm Ortex—has forced sellers to buy back shares at escalating prices. With a float of about 10 million shares, the dynamics have amplified every wave of buying into outsized gains.

Hedge funds have played a central role in tightening supply. SEC filings show SRS Investment Management, led by billionaire Karthik Sarma, holds nearly 50 percent of shares, up from 30 percent in 2021, while Pentwater Capital Management increased its stake to 22 percent from 8 percent over the past...