Hertz(US:HTZ) Forbesยท2025-08-04 15:00Core Viewpoint - Hertz's stock has experienced significant volatility, rising 64% in 2025, primarily due to Bill Ackman's investment, but has faced challenges with disappointing earnings and customer service issues related to its new AI technology partnership with UVeye [2][3][4]. Financial Performance - Hertz's revenue for Q1 2025 was $1.81 billion, down 13% year-over-year and 10.4% below consensus estimates, with a loss per share of $1.28, which was 3.7% worse than expected [7]. - Analysts predict a 7.6% revenue decline for Q2 2025, with an anticipated loss per share of 44 cents, while Hertz aims for breakeven adjusted earnings before interest, taxes, depreciation, and amortization [7]. Investment and Strategic Moves - Bill Ackman's $46 million investment in Hertz was made with an understanding of the company's turnaround strategy, which includes cost cuts, fleet restructuring, and the integration of AI technology for vehicle inspections [4][10]. - The partnership with UVeye could potentially add significant revenue by improving damage detection and charging customers for previously undetected vehicle damage, with optimistic projections suggesting an addition of $1.5 billion to Hertz's revenue [5][19]. Customer Experience and Challenges - The implementation of UVeye's technology has led to customer complaints regarding the checkout process, with reports of high charges for minor damages and difficulties in disputing those charges [14][15][16]. - Hertz acknowledges the need for improvement in customer service related to the new technology and is committed to enhancing the rental experience [18]. Market Outlook - Analysts view Hertz's shares as overvalued, with an average price target of $4.24, indicating a potential 34% decline from current levels [22]. - The upcoming earnings report on August 7 could influence stock performance, particularly if the UVeye partnership yields positive guidance, although expectations remain low [23].