The massive short squeeze against Avis Budget (CAR) bears showed no signs of ending. Avis shares added another $100 to gain 23.27% on Monday.
Barclays wrote a bearish note against CAR stock. In its downgrade to “Sell,” the firm said that a supply/demand mismatch is responsible for the stock’s rise. Two holders own 71% of the company. However, the stock has over 100% in economic interest when adding the outstanding swap.
AVIS stock traded as low as $78.71. It closed at $608.80. The six-fold rise in the share price started in March.
Amazon (AMZN) should open up by around 2.5% on Tuesday. The firm announced a $5 billion investment in Anthropic. It will buy up to $20 billion in AI companies in the next few years.
After the market ignored the conflict at the Strait of Hormuz, retail traders are positioning for the next leg up for stocks. Fundstrat’s head of research, Tom Lee, said on CNBC that investors are starting to take money off the sidelines to buy stocks.
The S&P 500 (IVV), Nasdaq (IVV), and the Dow Jones trade near their all-time highs.
Retail investors who bought near the low for the year have plenty of paper gains. Investors joining the party late are taking on more risk. It takes just a few tweets threatening escalating attacks on Iran to sink markets. Plus, the Strait is not yet open. That pushes oil prices higher, causing inflation that weighs on the global economy.
