Bill Ackman backs Hertz
Bill Ackman and his team at Pershing Square Capital Management have embarked on an exciting turnaround plan for the car rental company with an almost 20% stake in Hertz Global Holdings Inc. The investment in the company began late last year, and now Ackman holds a whopping 19.8% of the shares, consisting of direct stock ownership and total return swaps.
Ackman is convinced that Hertz can overcome the challenges resulting from Tesla's unsuccessful entry into the electric vehicle world. He also believes that the company will benefit from an increase in used car prices triggered by Trump's 25% tariff on US car imports. This tariff could drive up the price of new cars, which in turn could increase the value of used vehicles. Hertz has an advantage here, as the company is well positioned with a fleet of over 500,000 vehicles with an estimated total value of around 12 billion euros.
A 10% increase in used car prices could give Hertz a profit of €1.2 billion on its car assets, which is about half of the company's current market capitalization. Ackman sees the potential for Hertz to rise to 30 euros per share by 2029, whereas before the current rally the shares were still trading below 5 euros. So the future looks promising.
Netflix shines after strong quarterly figures
In the USA, Netflix $NFLX (+1,21 %) caused a sensation in the after-hours trading session on Thursday when the company presented its quarterly results, which exceeded Wall Street's expectations. These impressive figures are mainly due to higher subscription prices and increased advertising revenue.
Netflix shares have risen 9% since the beginning of the year and are up almost 60% in the last 12 months. Analysts agree that Netflix is well equipped to weather economic downturns. JPMorgan even describes the company as the "most resilient" they have observed. Netflix has the goal of doubling its revenues by 2030 and reaching a market capitalization of 1 trillion euros.
In recent days, the relative strength of the share price has improved, indicating a possible turning point. The shares rose by 3.5% to around 1,007 euros in after-hours trading. Investors should now watch out for key resistance levels around EUR 1,065 and EUR 1,300, while support levels are at EUR 821 and EUR 697.
Sources:
https://finance.yahoo.com/news/ackman-says-pershing-owns-19-203543846.html
https://finance.yahoo.com/news/watch-netflix-price-levels-stock-032715054.html
