CAR Stock Heads For Biggest Weekly Fall In Over 15 Years – Retail Expects Further Sell-Off After Q1 Earnings Next Week

• Earlier this week, Barclays said the rally was driven by a supply-demand imbalance, with two investors controlling about 71% of the shares.
• On Thursday, Fugazi Research said the sharp sell-off followed the collapse of a fragile setup between two hedge funds.
• Avis is expected to post a revenue of $2.41 billion and a loss of $7.18 per share for the first-quarter earnings scheduled on April 29.

Shares of Avis Budget Group (CAR) dropped about 9% on Friday, putting the stock on track for its worst week in over 15 years, after a short squeeze that led to a near 400% rally, reportedly unraveled.

The stock is nearing its 50-day moving average (50-DMA) for the first time in a month after a three-day sell-off wiped out over 70% of its value.

Source: TradingView

Short Squeeze Drives CAR To Its Highest Point

Until Wednesday, CAR stock gained in all but one session in April, driven by a reported short squeeze. The rally pushed shares up nearly 400% to a record high.

Earlier this week, Barclays said the rally was driven by a supply-demand imbalance, with two investors controlling about 71% of the shares and total economic interest exceeding 100% due to swaps, while high short interest sparked a sharp squeeze.

What Triggered The Collapse?

On Thursday, Fugazi Research said the sharp sell-off followed the collapse of a fragile setup between two hedge funds, SRS Investment Management and Pentwater Capital, describing it as a “prisoners’ dilemma” that quickly unraveled.

It noted that the two hedge funds had built combined exposure exceeding 100% of the float, effectively squeezing supply and pushing the stock far beyond its fundamentals, calling it the most extreme short squeeze since GameStop.

The firm also flagged serious concerns about the business, citing billions in recent losses, heavy debt, and weak earnings relative to its interest obligations. It added that the company offers no dividends or meaningful buybacks, while its balance sheet remains under pressure.

All Eyes On Earnings Next Week

Retail sentiment on Stocktwits remained ‘bearish’ over the past 24 hours, amid ‘extremely high’ message volumes.

Users highlighted the company’s first-quarter (Q1) earnings, scheduled for April 29, and noted that the stock is likely to fall further after the report.

According to Fiscal.ai, Avis is expected to post a revenue of $2.41 billion and a loss of $7.18 per share. Its total liabilities as of Dec. 31, 2025, exceeded $34 billion.

The stock’s year-to-date gains stand at 60%.

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