Why Avis Budget Group Stock Was Stalling This Week
The auto industry is currently in a state of nervous anticipation, and that's not good for associated companies. One striking case in point is auto rental mainstay Avis Budget Group (NASDAQ: CAR), whose share price according to data compiled by S&P Global Market Intelligence was down by more than 25% week to date as of early Friday morning.Avis didn't have any negative news of its own to report. Still, investors were rightfully concerned about its vulnerability to current events -- namely, the current round of tariffs imposed by the Trump administration on several of this country's key trading partners. On Wednesday, the government set 25% tariffs on all steel and aluminum imports coming into this country. The aim is to support the domestic metallurgy industry, but as with any trade war, not every industry benefits. Higher input prices for the two metals are a direct threat to auto manufacturers and, by extension, companies like Avis that purchase cars for their fleets. Continue reading
The auto industry is currently in a state of nervous anticipation, and that's not good for associated companies. One striking case in point is auto rental mainstay Avis Budget Group (NASDAQ: CAR), whose share price according to data compiled by S&P Global Market Intelligence was down by more than 25% week to date as of early Friday morning.
Avis didn't have any negative news of its own to report. Still, investors were rightfully concerned about its vulnerability to current events -- namely, the current round of tariffs imposed by the Trump administration on several of this country's key trading partners.
On Wednesday, the government set 25% tariffs on all steel and aluminum imports coming into this country. The aim is to support the domestic metallurgy industry, but as with any trade war, not every industry benefits. Higher input prices for the two metals are a direct threat to auto manufacturers and, by extension, companies like Avis that purchase cars for their fleets.
