Why Hertz Stock Tanked 23% Monday
Shares of Hertz (NYSE: HTZ), the well-known vehicle rental company in the middle of its bankruptcy process, dropped as much as 23% in morning trading Monday as investors come to the realization that its speculative stock price rise is most likely over.
The Hertz stock roller coaster that started days after the company's bankruptcy protection filing on May 22, 2020, was one of the more unique developments in recent market history. The stock soared 1,462% from its May 26, 2020, low of $0.40 per share to its $6.25 intraday high on June 8, 2020. The speculative rise in Hertz stock could have been driven by investors unaware of how the bankruptcy process works. And while it likely fueled a short squeeze in the near term, the likely outcome all along has been that Hertz stock is heading to zero. Now that the circus surrounding the company's stock price appears to have calmed, the stock is likely to slowly lose its value as the bankruptcy process continues and Hertz faces delisting from the New York Stock Exchange (NYSE) sooner rather than later.
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Source Fool.com