Avis Budget Group Shares Plunge 57% as Speculative Rally Collapses

Apr 23, 2026 14:01 UTC

CAR

Immediate term

Avis Budget Group Inc. saw its stock price crater by over 57% in two days following a massive speculative surge. The reversal has triggered billions in gains for short sellers betting against the company's valuation.

Stock price declined 57% within a two-day window
Previous rally saw a 600% increase since late March
Wednesday's single-day rout saw a near-40% drop
Short sellers recovered $2.8 billion in gains
Previous short-seller losses totaled $2.7 billion

Shares of Avis Budget Group Inc. have experienced a violent correction, plummeting more than 57% over a 48-hour period. This sharp decline effectively halts a parabolic rally that had seen the stock climb nearly 600% since late March. The sudden reversal suggests a correction toward fundamental value after a period of unsustainable growth. The volatility has created a high-stakes environment for traders, particularly those utilizing short positions to speculate on a price correction. According to data from S3 Partners, short sellers realized windfall gains of $2.8 billion during Wednesday's near-40% rout. This recovery nearly offsets the $2.7 billion in losses those same traders incurred during the preceding three days of the rally. The extreme price action highlights the risks associated with momentum trading in the rental car sector. Investors are now assessing whether the stock has found a floor or if further volatility is expected as the market digests the correction.