Hertz Short Squeeze: The New Reddit Stock Play?

Core Viewpoint - Hertz Global Holdings, Inc. experienced a significant stock price increase of 40% following the release of its Q3 earnings, driven by strong earnings momentum and a potential short squeeze [1][2]. Financial Performance - Hertz reported earnings per share (EPS) of 12 cents, surpassing analyst expectations, with revenues reaching $2.48 billion, marking its first quarterly profit in nearly two years [2]. - The company's turnaround was attributed to strategic cost discipline, a refreshed rental fleet, and the early results of CEO Gil West's restructuring plan [2]. Market Dynamics - The stock's surge attracted a large number of retail buyers, as traders sought the next high-risk, high-reward meme stock [3]. - Hertz's short interest was reported at 43.22%, indicating a high susceptibility to a short squeeze, similar to past events with GameStop and AMC [4]. - The significant short float above 40%, combined with the company's recent transition from loss to profit and high institutional ownership, increases the risk for short sellers [5]. Investor Sentiment - The spike in Hertz's stock price reflects both a potential short squeeze and renewed confidence in the company's strategic direction [6]. - The narrative of Hertz becoming the next meme stock is gaining traction on trader forums and social media, positioning it as a battleground between short sellers and retail investors [6].