Avis Budget Group stock jumps up to 13% as short squeeze lifts price

Avis Budget Group's shares surged 13% Thursday, pushing the U.S. Nasdaq‑listed CAR stock to $235 in a dramatic short‑squeeze rally.

The rally matters because it inflates the market value of a major rental‑car operator, reshapes investor sentiment on highly shorted names, and adds volatility to the broader Nasdaq market.

Over the past month the stock has risen dramatically, with estimates ranging from a 118% gain reported by Blockonomi to an almost 340% surge noted by Yahoo Finance^[1][2]. The wide range reflects differing calculation periods but underscores a multi‑hundred‑percent rally in a single sector.

Daily moves also vary by source. Yahoo Finance recorded an almost 13% rise on Thursday^[1], while Blockonomi described a 10% jump to $235^[2]. Both figures point to a single‑day surge that far outpaces typical market drift.

The price surge is driven by a short‑squeeze—heavy call buying amplified a high short interest in CAR shares, forcing short sellers to cover and pushing the price higher^[1].

On the same trading day Hertz, another rental‑car ticker, advanced 8% as investors chased similar momentum in the industry^[3].

Analysts remain cautious, with price targets still set around $115, well below the current $235 level^[2].

**What this means** The short‑squeeze episode highlights how concentrated short positions and aggressive options buying can create rapid, large‑scale price distortions. While some investors reap quick gains, the inflated valuation raises questions about the stock’s sustainability once the squeeze subsides. Market participants should monitor short‑interest data and option flow for signs of similar volatility in other heavily shorted equities.