Hertz Stock (HTZ) Soars 120% as Bill Ackman Bets 46 Million
The Dow Jones and S&P 500 has dipped about 1% today, while Hertz shares surged after Bill Ackman purchased a 20% stake in Hertz Global Holdi
Quick overview
- US stock markets declined significantly today, with the Dow Jones and S&P 500 dropping around 2% amid negative economic signals.
- Hertz stock surged over 120% after billionaire investor Bill Ackman acquired a 20% stake in the company, sparking renewed optimism.
- The Nasdaq Composite experienced the largest decline among major indices, falling over 3% due to weakness in the tech sector.
- Despite Hertz's rally, the overall market remains volatile, influenced by disappointing earnings and geopolitical tensions.
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The Dow Jones and S&P 500 has dipped about 1% today, while Hertz shares surged after Bill Ackman purchased a 20% stake in Hertz Global Holdings Inc.
Markets Sink While Hertz Skyrockets on Surprise Pershing Square Investment
U.S. equity markets posted their steepest single-day declines in recent memory, with investor sentiment hit by a combination of underwhelming corporate earnings in the semiconductor space, intensifying trade tensions between the U.S. and China, and persistent doubts about the Federal Reserve’s next move.
The tech-heavy Nasdaq led the retreat, reflecting broader risk aversion across growth-oriented sectors. Yet, amid the sharp downturn, one stock stood out in dramatic contrast—Hertz (NASDAQ: HTZ), which delivered an eye-popping rally following an unexpected announcement from billionaire investor Bill Ackman. With corporate earnings in full gear and global tensions continuing to rise, traders should brace for ongoing market swings
Main US Stock Indices – Closing Levels
S&P 500
• Closed at 5,275.70, down −121 points (-2.24%)
• Marked its largest single-day percentage drop since February, pressured by tech weakness and renewed rate worriesDow Jones Industrial Average
• Ended the day at 39,669.39, a decline of −700 points (-1.73%)
• Blue-chip names lost ground amid concerns over global trade tensions and earnings volatilityNasdaq Composite
•Finished at 16,307.16, tumbling −516.01 points (-3.07%)
• The worst performer of the three major indices, dragged down by sharp losses in chipmakers and high-growth tech
Hertz Defies the Market With Explosive Rally Fueled by Ackman’s Stake
While major indices like the Dow and S&P 500 slipped around 2% under pressure from macroeconomic unease and sector-wide tech weakness, Hertz Global Holdings delivered a shock to the system. The stock erupted more than 55% during regular hours, closing at $5.71, after Pershing Square Capital Management—led by Bill Ackman—revealed a sizable 20% stake in the company.
The investment firm confirmed it had purchased approximately 12.7 million shares, totaling an investment of around $46.5 million. This vote of confidence triggered a frenzy of investor optimism, with many viewing the stake as a potential
HTZ Breaks Out: Stock Climbs Past $8 in Extended Trading
Ackman’s investment appeared to ignite a wholesale re-evaluation of Hertz’s future. Following Wednesday’s close at $3.65, the stock gapped sharply higher and sustained its bullish momentum throughout the session and into the after-hours. By late evening, HTZ had surged above $8.89—a gain exceeding 125% in less than 24 hours, marking one of the largest single-session advances in the company’s trading history.
Could Hertz Be Poised for a Revival?
The timing of this investment is particularly striking. Hertz has endured years of financial hardship, with its stock experiencing a prolonged decline since emerging from bankruptcy in 2021. The company’s financials took a severe hit in 2023, posting a $2.86 billion net loss—largely attributed to the depreciation of its vehicle fleet, which drove investor confidence lower. By early 2024, shares had fallen by over 60% from their post-restructuring peak, leaving the company to battle against headwinds in both the traditional rental and EV markets.
Institutional Confidence Sparks Speculative Frenzy
The scale of the response illustrates the powerful influence of institutional investors in shifting narratives. Although Hertz remains burdened by long-term structural challenges, Pershing Square’s decision to enter the fray suggests optimism about unlocking hidden value or executing a turnaround strategy. Retail investors and momentum-driven traders followed the lead, propelling the stock even further in what became a self-reinforcing cycle of speculative buying.
Hype or Hope: What Lies Ahead for Hertz?
Whether this dramatic surge marks a sustainable shift in Hertz’s trajectory or merely a fleeting speculative episode is still unclear. Yet with Ackman now on board and the spotlight shining once again on the company, Hertz has captured the market’s imagination. The next steps—be it operational restructuring, strategic shifts, or further institutional support—will determine whether HTZ’s rally evolves into a true recovery or fades as quickly as it came, since it is trading $1.50 from the pot-market highs already now.
Dow Jones Industrial Average Index Live Chart
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