Avis Budget Group's stock has surged 264% in the past month, dwarfing the S&P 500's modest 2.8% gain. The rally appears fueled by a perfect storm of factors: a severe short squeeze with over 26% of float sold short, and TSA staffing shortages driving travelers toward rental cars.

Wall Street remains skeptical. Deutsche Bank downgraded CAR to Hold with a $128 target, well below current trading levels. The company's fundamentals tell a grim story—a $4.60 per share Q4 loss, $8.66 billion in long-term debt, and $747 million net losses can't justify the parabolic move.

Tuesday saw a 7.6% pullback after Monday's 24% spike, suggesting volatility may persist. The rally began in late March when airport chaos created unexpected demand for rental vehicles, though whether this justifies triple-digit percentage gains remains debatable.