We may receive a commission when you use our links. Monkey Miles is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com and CardRatings. This relationship may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. Monkey Miles is also a Senior Advisor to Bilt Rewards. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
The stock market is still on an absolute tear as retail investors flood into the market from brokerages like Robinhood. I wrote an article a couple weeks ago highlighting several travel based stocks that have rallied off their March lows as they face the strongest headwinds to growth in modern times. None is more confounding, or represents the mania behind this rally better than Hertz. Hertz declared bankruptcy on May 22nd and immediately saw a surge in investor activity who I’d presume were looking to make bets on a bailout? Not really sure…
You can see in the Robintrack chart below that investor activity skyrocketed between the March lows ( 4k invested ) and its bankruptcy announcement May 22nd ( 40k invested ). One would think this would have caused a major sell off.
Wrong.
Since their bankruptcy announcement, inflows from Robinhood have surged another 4x to almost 160k accounts invested – a whopping 40x from the lockdowns and an unclear travel sector future. Today, Hertz announced it was appealing a delisting notice served on May 26th, 4 days after their May 22nd bankruptcy announcement. Hertz is down 40% on the day and one has to wonder…how many of these retail investors are going to get caught holding a big fat nothing burger.
If you’re interested, you should read more on Hertz and their car liquidations here.
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved, or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.