CAR Stock Finally Sees Red After 120% Rally Over Seven Sessions

• The firm added that the downgrade is based on valuation concerns.
• According to Street estimates, Avis is expected to post a loss of $7 per share and a revenue of $2.4 billion for the quarter ended March 31, 2026.
• Last month, the company announced an automatic share offering.

Avis Budget Group (CAR) stock finally slammed the brakes on a rally that saw it climb nearly 120% over the past seven sessions. CAR shares fell 11% on Friday, recording their biggest intraday losses since Feb. 19, 2026.

Earlier this week, Deutsche Bank downgraded the stock to ‘Hold’ from ‘Buy’ while maintaining a $128 price target, according to The Fly, implying roughly a 50% downside from current levels.

The firm said the downgrade is based on valuation concerns, as the current price is hard to justify on fundamental grounds. The short interest on CAR stock is 23%, according to Koyfin data.

How Did Retail Traders React?

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

Despite the intraday drop, one user remained bullish, expecting the stock to climb to $500.

Earnings Slide

Avis’ December-quarter revenue and net profit fell below analysts’ expectations, according to Fiscal.ai data. CEO Brian Choi called the outcome “unacceptable”.

The company is scheduled to post its March-quarter results in the first week of May. According to Street estimates, Avis is expected to post a loss of $7 per share and a revenue of $2.4 billion.

Last month, the company announced that it was selling its common shares through an automatic offering at a par value of $0.01 per share. Proceeds will be used for general corporate purposes, including debt repayment, acquisitions, working capital, share buybacks, dividends, and investments, it added.

Year-to-date, the stock has gained more than 100%.

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