A second day of selling pressure hit technology stocks tied to the AI theme on Wednesday, as sentiment cooled after an MIT report questioned the broad profitability of the new technology.
Carvana Co (NYSE:CVNA) shares are trading lower Wednesday after Hertz Global Holdings Inc (NASDAQ:HTZ) announced that it will sell certified used cars on Amazon.com Inc (NASDAQ:AMZN) Autos.
A number of stocks fell in the afternoon session after an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
Shares of global car rental company Hertz (NASDAQ:HTZ)
fell 3.4% in the morning session after ongoing concerns about its financial health and downbeat analyst ratings overshadowed a recent quarterly earnings beat. Even though Hertz recently reported second-quarter earnings that beat expectations, the positive news failed to convince investors of a sustained turnaround. Lingering issues are weighing on the stock, particularly a significant drop in free cash flow, which plummeted to negative $2.7 billion, raising concerns about the company's liquidity. Further adding to the pressure, several analysts maintained a negative outlook. BofA Securities reiterated its "Underperform" rating, citing "macroeconomic uncertainty and signs of travel demand waning." Similarly, Goldman Sachs maintained its "Sell" rating on the stock, believing the longer-term outlook remains challenging despite the recent quarterly performance. With a significant debt load of over $18.4 billion, investors seem to be focusing on these fundamental weaknesses rather than the short-term earnings surprise.
Global car rental company Hertz (NASDAQ:HTZ) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 7.1% year on year to $2.19 billion. Its non-GAAP loss of $0.34 per share was 17.4% above analysts’ consensus estimates.
Global car rental company Hertz (NASDAQ:HTZ) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 7.1% year on year to $2.19 billion. Its non-GAAP loss of $0.34 per share was 17.4% above analysts’ consensus estimates.
Hertz Global Holdings Inc (NASDAQ:HTZ) shares are moving higher Thursday after the company reported better-than-expected financial results for the second quarter.
Hertz reports strongest quarter in nearly two years with narrowed losses, beating analyst estimates. Adjusted EBITDA turns positive, cost controls improve, and fleet utilization rises. Shares gain in pre-market trading.
Shares of global car rental company Hertz (NASDAQ:HTZ)
fell 3.4% in the afternoon session after bellwether United Parcel Service (UPS) reported weak earnings and withheld its full-year guidance, citing “macro-economic uncertainty” and low consumer sentiment.
Palantir aims to be top AI partner for Fortune 500 CEOs, with 100% stock gain in 2025. Its AIP Boot Camps attract big names and shift to private sector.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
