Friday, November 11, 2016

Uber and Lyft are having some unexpected effects, we knew taxis would take a hit, but who thought about the rental car companies? Hertz just lost 50% of stock value

The car rental company's stock tanked over 50% Tuesday morning after it cut its forecast for future growth and reported weak earnings Monday night.

It was the stock's worst performance since the financial crisis in 2008. And even though it pared back some of the losses by midday Tuesday, the stock was still down over 30%.

However, Carl Icahn decided to buy the dip and more than double his stake in the company on Tuesday. The octogenarian now owns 33.8% of Hertz, up from a previous stake of about 15.6%.

Shares of Hertz ultimately ended 23% lower

Hertz Global Holdings, whose rental car brands include Dollar and Thrifty, has been negatively impacted by weakness in the rental car industry, and factory recalls throughout all brands

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