Hertz Short Squeeze: The New Reddit Stock Play?

Shares of Hertz Global Holdings, Inc. (NASDAQ:HTZ) blasted 40% higher Tuesday in an apparent short-squeeze following the company's Q3 earnings release. 

• HTZ stock is soaring. See the real-time price action here. 

The surge was driven by a combination of explosive earnings momentum and a potentially high-stakes short squeeze—a market phenomenon where rapid price appreciation forces short sellers to cover their positions by buying shares, which accelerates further gains.​

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Why Hertz Is in Focus

After years of post-bankruptcy struggles, Hertz surprised the market with its first quarterly profit in nearly two years. 

The company reported EPS of 12 cents, decisively beating analyst estimates, on revenues of $2.48 billion. 

Management credited the turnaround to strategic cost discipline, a refreshed rental fleet and the early visible results of CEO Gil West's back-to-basics restructuring plan. 

The strong report fueled a massive influx of retail buyers as news of the earnings spread and traders hunted for the next high-risk, high-reward meme stock.​

The Short Squeeze Setup

With data from Benzinga Pro showing a short interest of 43.22%, HTZ is flagged as highly susceptible to a classic "short squeeze" reminiscent of GameStop and AMC in 2021.

In Reddit forums r/wallstreetbetsnew and r/stocks, users debated whether Hertz's rapidly improving fundamentals and the loaded short interest could spark a new wave of retail-driven momentum buying. 

The short float above 40% is significant, especially for a company that just flipped from loss to profit and where institutional ownership is also high—further raising the risk for shorts caught on the wrong side of the trade.​

Market Reaction & Outlook

Hertz stock price spike could reflect both a squeeze in progress and new confidence in the company’s strategy. 

The narrative of Hertz as the next meme stock is already in full swing among trader forums and social media, making it the latest battleground between short sellers and retail optimists. 

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