Bill Ackman, a prominent investor and founder of Pershing Square Capital Management, has taken a significant stake in Hertz Global Holdings, the parent company of rental car services like Hertz Rent a Car. Ackman sees an opportunity for growth in the struggling company.
In 2021, Hertz faced financial difficulties due to increased competition from ride-hailing companies and changing consumer behavior. The company filed for bankruptcy and underwent significant restructuring. Since then, Hertz has been working to revamp its business model and improve its financial performance.
Ackman believes that Hertz can capitalize on the growing demand for rental cars in certain markets, particularly in areas with limited access to ride-hailing services. He also expects the company to benefit from its acquisition of SuperShuttle, a leading provider of shared-ride transportation.
By investing in Hertz, Ackman is betting big on the company’s potential for growth and recovery. His investment has helped boost the company’s stock price by over 44% since his stake was revealed.
Ackman’s confidence in Hertz reflects his long-term outlook on the rental car industry. As a seasoned investor, he understands the importance of adapting to changing market conditions and identifying opportunities for growth in niche areas. With Ackman’s support, Hertz is poised to navigate its challenges and capitalize on emerging trends.
Source: https://www.barrons.com/articles/hertz-stock-bill-ackman-uber-054bd6e7