Avis Budget Group Inc. (NASDAQ:CAR) CEO Brian Choi addressed the recent dramatic swings in the company’s stock price, attributing the market chaos to a massive short squeeze and vowing legal action to protect shareholders from opportunistic trading.
‘Aggressively Pursue’ Rights
During the company’s first-quarter 2026 earnings call, Choi directly addressed the “excess volatility” surrounding CAR stock.
Following reports of a massive short squeeze allegedly manufactured by major hedge funds holding a concentrated available float, Choi noted that Pentwater Capital disclosed the sale of 4.3 million shares for gross proceeds of $1.75 billion over just two days.
Pentwater acknowledged the sale was, at least in part, violative of SEC Section 16 short swing profit rules.
In response, Choi promised strict accountability to investors. “Avis has requested Pentwater furnish all relevant information concerning the trades, and Avis will aggressively pursue all rights on behalf of our stockholders,” Choi stated firmly.
Fighting ‘Value Extraction’
Choi drew a sharp contrast between Wall Street maneuvers and the company’s operational focus. Acknowledging analyst inquiries about whether the company should have capitalized on the squeeze by issuing equity at inflated prices, Choi was clear: “I’m not here to trade Avis for value extraction.”
He emphasized that Avis has not bought or sold a single share since 2024, maintaining management’s focus on long-term business improvements rather than capitalizing on short-term market games.
Q1 Fundamentals
Despite the market drama that caused shares to plummet before the earnings release, Avis reported a “meaningful inflection in our operating performance.”
The company posted first-quarter revenue of $2.5 billion, exceeding Wall Street expectations, alongside an Adjusted EBITDA loss of $113 million. Notably, the Americas segment saw positive pricing growth for the first time in 10 quarters.
“With tighter fleet discipline, improving pricing, and stronger utilization, we are building a more resilient business with clear momentum heading into the rest of the year,” Choi noted, as the company confidently raised its full-year adjusted EBITDA guidance to a range of $850 million to $1 billion.
CAR Stock Soars In 2026
CAR stock has risen 41.17% year-to-date, while the Nasdaq Composite index advanced 6.19% over the same period. Furthermore, the stock was up by 30.28% in the last six months and 97.42% over the year.
The stock closed Wednesday 0.47% lower at $181.15 apiece. Benzinga’s Edge Stock Rankings indicate that STX maintains a strong price trend in the medium and long terms, but a weak trend in the short term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Mino Surkala from Shutterstock
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