--- title: "Why Hertz Stock Soared 73% in April" type: "News" locale: "en" url: "https://longbridge.com/en/news/238599495.md" description: "Hertz Global Holdings' stock surged 73% in April after billionaire Bill Ackman acquired a 19.8% stake, citing the company's undervalued assets and potential for a turnaround. Despite this, Hertz remains unprofitable and faces challenges in a potentially recessionary environment, with analysts predicting modest profits by 2026. The car rental industry is cyclical, and slowing travel demand could impact Hertz negatively. The company is set to report first-quarter earnings on May 12, which may influence stock performance." datetime: "2025-05-02T16:21:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/238599495.md) - [en](https://longbridge.com/en/news/238599495.md) - [zh-HK](https://longbridge.com/zh-HK/news/238599495.md) generator: "portal-rs" --- # Why Hertz Stock Soared 73% in April Shares of **Hertz Global Holdings** (HTZ 0.58%) were skyrocketing last month on news that billionaire Bill Ackman, head of Pershing Square Capital Management, had taken a 19.8% stake in the car rental company and longtime laggard on the stock market. Ackman explained his rationale in a post on X, saying that he likes its highly leveraged portfolio of automobile assets and sees it as being undervalued due to an earlier debacle from buying too many **Teslas**. He argued that more-rational competitive behavior in an oligopoly dominated by three companies, the end of the Tesla issue, a new management team with a promising turnaround plan, and attractive capital structure could generate a significant return on investment. The stock soared on Ackman's announcement and finished the month of April up 73% according to data from S&P Global Market Intelligence. As you can see from the chart below, the surge came immediately after Ackman's stake was revealed. ^SPX data by YCharts. The stock pulled up at the end of the month, which could be a sign that it was overbought in response to the Ackman news. ## Is Ackman right about Hertz? The car rental industry has historically been a bad one for investors, and Hertz has been a longtime underperformer. The company was forced into bankruptcy during the pandemic, and its return to the public markets has been inauspicious so far, with its market cap hovering at just around $1 billion prior to Ackman's announcement. And it is still not profitable, though analysts call for a modest profit in 2026. Buying a car rental stock as economic data signal that the U.S. could be entering a recession is a risky move since the car rental industry is highly cyclical and sensitive to both leisure and business travel, which are among the first expenses to get trimmed in weak economies. Ackman also argued that Hertz's fleet of 500,000 vehicles gives it an edge in a world where auto tariffs drive used-car prices up. That would only make sense if Hertz didn't need to replace those vehicles, which it does frequently. If anything, tariffs seem likely to be a headwind for the company because it's likely to have to take larger depreciation expenses as it pays more for used cars. Image source: Getty Images. ## What's next for Hertz Airlines and **Airbnb** are already signaling that travel demand is slowing down, which would be a significant headwind for a company that is already unprofitable and barely growing. Hertz will report first-quarter earnings on May 12, and shares are likely to move on the news. If the update doesn't live up to the Ackman hype, the stock could tumble. ### Related Stocks - [HTZ.US](https://longbridge.com/en/quote/HTZ.US.md) ## Related News & Research - [Hertz appoints COO Michael Moore as president of service division](https://longbridge.com/en/news/298639045.md) - [Here's How Much $1000 Invested In STMicroelectronics 15 Years Ago Would Be Worth Today](https://longbridge.com/en/news/298750042.md) - [New generation MAN eTGX unveiled with 720 km range](https://longbridge.com/en/news/298921528.md) - [Zoopla explains why it expects rental price growth to accelerate by end of 2026](https://longbridge.com/en/news/298842859.md) - [E-quipment highlight: wreck stuff anywhere with CASE TL100EV [video]](https://longbridge.com/en/news/298811627.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**