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Luke Kawa

Avis erases what’s left of its 390% April gain on news that major holder dumped 4.3 million shares

Oftentimes when you rent a car, you take it right back where you got it from.

Same thing for shares of Avis, apparently:

The rental car company’s stock is down about 20% this morning amid a mixed set of quarterly results thanks to the revelation that one of its biggest shareholders, Pentwater Capital Management, sold over 4.3 million shares on April 22 at very wide range of prices (from about $250 to $700).

That session, Avis traded up nearly 19% in the premarket (breaching $800) but closed down a whopping 37.8%. At its premarket lows, the stock had erased its entire monthly gain, which was 390% as of the close on April 21.

Somewhat inexplicably, not only did Avis fail to exhaust the 5 million-share at-the-market offering it launched in late March at the onset of this parabolic move, but it didn’t even sell a share!

“It is important to note that Avis has not bought or sold a share since 2024,” CEO Brian Choi said during the earnings call on Wednesday.

“We were in a quiet period,” he added, when asked about why the company didn’t take advantage of its lofty share price. “But I can tell you this much: we have no intention of issuing shares anywhere near these levels.”

The footnotes of Pentwater’s filings note that some of its sales run afoul of the mandate that insiders and over 10% holders can’t make money on trades within a six-month period, and that it has “agreed to voluntarily disgorge to the Issuer any short-swing profits realized from these matchable transactions in accordance with Section 16(b) of the Securities Exchange Act of 1934.”

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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