From Yahoo Finance: 2025-05-06 10:07:00

Billionaire hedge fund manager Bill Ackman revealed a stake in Hertz, citing potential for improved utilization rates and lower expenses due to tariffs. Hertz stock surged 71% after his announcement, with Ackman predicting a potential rise to $30 by 2029, driven by tariff-related value gains in the company’s fleet.

However, investing in Hertz comes with risks, notably its heavily shorted stock. Short interest has steadily increased, with about 50% of Hertz’s float sold short. Ackman’s optimistic forecast hinges on increased demand from tariffs, but uncertainties remain regarding the company’s long-term value proposition and the sustainability of any short-term gains.

Ackman’s influence and potential short squeezes aside, uncertainties surrounding Hertz’s future and the volatile nature of heavily shorted stocks make it a risky investment. While Ackman’s projections are compelling, the stock’s performance may be more influenced by short sellers covering positions than actual business progress, warranting caution from potential investors.



Read more at Yahoo Finance: Billionaire Bill Ackman Thinks Hertz Stock Could Reach $30 by the End of the Decade. Here’s Why It Could Happen Sooner Than That.