Hertz Stock Soars After Ackman Endorsement and Pershing Square Investment

Hertz CEO Gil West says he is "humbled" by billionaire investor Bill Ackman’s strong endorsement after Ackman’s Pershing Square Capital Management revealed a 19.8% stake in the car rental giant, making it the company’s second-largest shareholder.

In a letter to employees, West expressed gratitude, saying, “We should all feel encouraged by Bill Ackman’s comments and energized by the strong support shown by him.” The announcement fueled a dramatic 44.3% surge in Hertz’s stock on Thursday, with shares now up over 125% since the start of 2025.

Ackman took to X (formerly Twitter) to praise West’s leadership and the company's strategic direction. He highlighted Hertz’s focus on boosting unit revenue and cutting operational costs, which he believes will drive higher profit margins in the coming years. Ackman also emphasized that Hertz’s capital structure positions the company to deliver strong returns for shareholders over time.

While acknowledging challenges in the travel sector, especially due to recent tariff-related uncertainties, Ackman remains optimistic. “We have low expectations for Hertz’s Q1 and first-half results,” he noted, “but believe the company is positioned for sustainably higher profitability in the intermediate term.”

The news has drawn renewed investor interest in Hertz (NASDAQ: HTZ), signaling growing confidence in its recovery and long-term strategy. As travel demand rebounds and operational efficiencies take hold, Hertz appears poised for significant gains. Ackman’s backing has amplified market optimism, positioning the company as a potential comeback story in the evolving mobility landscape.

With Pershing Square now a key stakeholder, all eyes are on Gil West and his team to deliver on the ambitious roadmap that could redefine Hertz’s future in the competitive car rental industry.