Why Shares of Avis Budget Group Collapsed This Week

Shares of Avis Budget Group (NASDAQ: CAR) have collapsed 53.7% this week, according to data from S&P Global Market Intelligence. The care rental company experienced a massive short squeeze in the past few weeks, with retail traders piling in against large institutional short positions before the party ended.As of this writing at 11:00 AM EST on Friday, April 24th, Avis Budget Group is in a 67% drawdown after rising over 500% at one point over the last month. Here's why the stock finally fell this week, and what investors should do going forward. A short squeeze can occur in a small-cap stock when a high % of its outstanding shares are sold short. Short sales occur when a stock is borrowed from an investor, who then sells it into the open market, aiming to profit by repurchasing it at a lower price. A short squeeze can happen when a bunch of investors try to buy back their shares at once, creating upward momentum in the share price that can get out of control.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool