Bill Ackman's Investment Fuels Hertz Stock Surge

Hertz shares soared after Bill Ackman's Pershing Square Capital Management disclosed a significant investment, initially reporting a 4.1% stake and later revealing a total position of 19.8% through shares and swaps, making Pershing Square the company's second-largest shareholder. This news triggered a sharp rally in Hertz's stock, with prices surging over 120% at one point and reaching a 52-week high, as investors saw Ackman's involvement as a potential catalyst for change. Ackman's investment comes as Hertz faces ongoing challenges, including significant losses stemming from its previous overcommitment to electric vehicles and broader industry disruptions. Despite the recent stock rally, concerns remain about Hertz's high debt, cash burn rate, and recent data breach affecting customer information. Ackman, known for activist investing, has not yet publicly detailed his plans for Hertz, but his track record suggests he may push for strategic changes to unlock value. The investment reflects broader interest in companies positioned to benefit from shifts in the automotive and mobility sectors, as seen in Ackman's recent moves in both Hertz and Uber.