Why Hertz Stock Plunged Today
Shares of Hertz (NYSE: HTZ) plummeted 24% on Tuesday, after analysts issued multiple warnings to investors.
Hertz filed for Chapter 11 bankruptcy protection on May 22, after the coronavirus pandemic and corresponding travel restrictions hammered its already struggling business. With little revenue coming in during the COVID-19 crisis, the vehicle rental company's crushing debt load became too much to bear.
Yet after hitting a low of $0.40 on May 26, Hertz's stock shockingly went on to rise more than 15 times in value by June 8. The gains were fueled in part by better-than-expected job figures and reports of rising airline passenger traffic, which gave some investors hope that Hertz's rental car business could recover.
Source Fool.com
