Avis Shares Plunge 5.54% as Hertz-Amazon Partnership Sparks 92.25% Surge in Trading Volume

On August 20, 2025, Avis Budget Group (CAR) fell 5.54% with a trading volume of $0.30 billion, marking a 92.25% increase from the previous day. The decline followed news that rival Hertz Global Holdings secured a partnership with Amazon Autos to sell used vehicles, intensifying competition in the car rental and sales market.

Hertz’s agreement with Amazon Autos grants access to a major e-commerce platform, enabling the sale of its large fleet of vehicles. This move positions Hertz to leverage Amazon’s customer reach, a strategic advantage Avis currently lacks. Analysts highlight the deal as a significant competitive blow, as both companies operate similar services and fleets, making market share gains critical.

Avis’s stock has historically been volatile, with 36 instances of over 5% price swings in the past year. The recent drop aligns with broader market trends, as investors rotated out of high-growth sectors. However, Avis’s long-term performance remains resilient, having risen 83.1% year-to-date despite lingering below its 52-week high.

A strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a total profit of $2,385.14. The returns grew steadily with minor fluctuations, reflecting moderate success in capturing short-term market momentum.