(New York) US car rental company Avis sparked sparks on the New York Stock Exchange on Tuesday after impressive results reflecting the renaissance of car rental companies with travel normalization.
Avis stock climbed 93% to $ 331 around 2 p.m. The action had even peaked at over $ 500 earlier in the session.
The listing has been interrupted several times due to this high volatility. A part of speculation also explained the sharp rise in the title with liquidations of short positions (short), analysts said.
Avis Budget Group, which includes in addition to the Avis network, Budget Rent a car, Payless Car Rental and the shared car service Zipcar, was celebrated by investors after announcing on Tuesday a doubling of its turnover over one year in the third quarter at $ 3 billion, well above expectations.
Net income from June to September fell from $ 45 million last year to $ 674 million. By 2020, with the pandemic and lockdowns around the world, the company had lost $ 684 million.
This strong recovery in activity reflects “the positive momentum as the travel environment continues to normalize,” said Managing Director Joe Ferraro in a statement.
“We are cautiously optimistic that the worst is behind us,” he said in a conference call.
The leader also promised to “be much more active” in the electric as the situation evolves while its competitor Hertz has just announced a huge order of 100,000 vehicles to Tesla.
He mentioned the addition of more hybrid vehicles to Avis’ fleet.
Without naming Hertz, Avis CFO Brian Choi said the initiative to grow its electric car fleet was positive for the rental industry in general.
The announcement of Hertz’s order to Tesla last week sent the electric carmaker’s stock soaring to historic highs for several days, to the point that Elon Musk recalled in a tweet on Tuesday that the contract was not not yet signed.
The title of Tesla fell suddenly Tuesday by more than 3% to 1,167 dollars.