Shares of global rental car conglomerate Hertz have plunged over 76% since last July, including Tuesday’s dive after its “earnings” fiasco. On Wednesday, shares fell 2.4% to $12.48. Liquidity problems loom on the horizon and its business model is threatened by disruptions, including rideshare companies.
Corporate customers and tourists are switching their ground-transportation dollars to rideshare companies, particularly Uber. This shift also dents sales for automakers and pressures prices down in the used car market, at the worst possible time, just when the US is sinking deeper into a “car recession.”
Here I am with hosts Barry Armstrong and Chuck Zodda, on Boston Business Radio WRKO, Financial Exchange Network, taking it from there:
#Carmageddon and Uber did it. But for Carl Icahn, it just doesn’t let up. Read… Hertz Gets Crushed after “Even Worse than Expected” Loss