Shares of Avis Budget Group (NASDAQ: CAR), a well-known vehicle rental company, are up 13% Wednesday as investors continue to jump on board after rival Hertz (NYSE: HTZ) filed for bankruptcy protection, possibly causing a short squeeze.
From the beginning of the COVID-19 pandemic, two things were very clear when it came to Avis and Hertz: that both businesses would be decimated in the near term along with the broader auto industry, and that Avis appeared better positioned to weather the storm. That's been accurately reflected in the stock prices, especially after Hertz filed for bankruptcy protection.