Dow sinks 1,200 factors, S&P 500, Nasdaq tank with Trump’s tariffs, Powell bashing in focus

Hertz (HTZ) shares tumbled 11% Monday morning, giving again positive aspects from final week’s rally sparked by Invoice Ackman’s hedge fund taking a big place within the rental automobile big.

Ackman, the CEO of Pershing Sq. Capital Administration, shared on social media that his firm had constructed a 19.8% stake in Hertz after accumulating shares since late final yr.

Hertz inventory surged on Wednesday after Pershing Sq. disclosed its 12.7 million share stake, fueling investor hypothesis in regards to the high-profile fund’s view of the struggling firm.

The rental firm reported a lack of practically $2.9 billion in 2024. Hertz attributed the disappointing outcomes to car depreciation and the drop within the worth of electrical autos, which it started buying again in 2021 to remain aggressive with the trade.

Ackman sees the corporate benefiting from auto tariffs, which is able to doubtless increase used automobile costs within the close to time period. Different automakers, like Audi and Volkswagen (VWAGY), have pledged to halt imports to keep away from paying the 25% levies.

Based on Ackman, that will be a boon for Hertz, which owns a fleet of greater than 500,000 automobiles valued at roughly $12 billion. A ten% improve in used automobile costs might translate to a $1.2 billion increase within the firm’s auto property alone.