- There is a global chip shortage and some of the largest beneficiaries are U.S. car rental companies like Avis Budget Group.
- Avis recently posted the highest ever quarterly adjusted EBITDA in its 75-year history and its market valuation has surpassed $8 billion.
- However, US used retail supply recently rose to above 40 days and the easing of the global chip shortage is likely to push Avis’ net profits back to 2019 levels.
- I’m bearish and the short borrow fee rate stands at just 0.47% as of the time of writing.
For further details see:
Avis Budget Group: The Good Times Are Unlikely To Last And I'm Bearish