Jim Cramer shares view on Hertz stock after new CEO

2024-03-18 12:02:56 ET

Famed investor Jim Cramer took a dovish tone on Hertz Global Holdings Inc (NASDAQ: HTZ) today after it named Gil West its new chief executive officer.

Cramer on $HTZ: ‘it’s a defeat’

West has most recently served as the head of operations at Cuise – the robotaxi segment of General Motors.

Stephen Scherr will be replaced as the CEO of Hertz Global on April 1 ^st after his electric vehicles offensive resulted in high write-downs. On CNBC’s “ Squawk on the Street ”, Jim Cramer said today:

It is, frankly, a defeat. It was initially very exciting. But the idea that you could somehow make it so you can trade cards like you can trade stocks and bonds did not work.

Hertz stock is now down over 25% versus the start of 2024.

Hertz stock is still losing money

Cramer had expected Stephen Scherr to do “unbelievably good” at Hertz Global but agreed this morning that his “skillset was not correct”.

In February, the car rental company reported $348 million loss for its fourth financial quarter. Part of the weakness was related to a decline in the price of Tesla vehicles in its fleet that Jim Cramer “did not see” coming either.

Note that $HTZ has changed its chief executive several times in recent years which suggests “it’s a very tough business” that has “not worked for anybody”, Cramer added on Monday.

Wall Street currently has a consensus “hold” rating on Hertz shares.

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