markets

Max Knoblauch7/30/25

Avis plunges 16% on Q2 earnings as CEO says “garbage sundae” of recalls is squeezing the company

Renting a car costs about 40% more than it did a decade ago, but that doesn’t appear to be translating to big bucks for rental companies. Avis shares are tanking Wednesday morning following a disappointing second-quarter earnings report.

Avis posted a profit of $4 million in its second quarter, down 71% year over year, as it took a $59 million hit because of restructuring charges.

Shares sank 16% in recent trading.

On its earnings call Wednesday, Avis pointed to tariffs and recalls as two macro issues impacting its bottom line. According to Avis, tariffs are causing manufacturers to delay production and delivery, leading it to hold on to older model-year cars for longer. Massive recalls are also squeezing the company, affecting 4% of its Americas fleet, per CEO Brian Choi.

“The cherry on top of this garbage sundae is that it’s hitting us in the heart of summer right now. It’s a gut punch,” said Choi, who added that the issue isn’t unique to Avis.

Unlike rental rival Hertz, Avis doesn’t have a rapidly expanding network of AI damage scanners to boost revenue.

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markets

J. Edward Moreno7/7/26

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.

US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings

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