That’s gotta Hertz

[The beef 675] [I'm an image] “I was always more of an Enterprise guys myself.” - Jason Hey there carnivores, Markets were mixed on Friday, ending a big positive week. And today we’re talking about Hertz filing bankruptcy. Keep raging, Jeff & Jason [Image] [I'm an image] That’s Gotta Hertz Hertz filed for bankruptcy Friday night after its revenue dried up faster than a raindrop in the Sahara thanks to travel restrictions caused by the coronavirus. Hertz is going with a Chapter 11 filing, looking to restructure its debt but continue operating so it can pay its creditors at least some of the $18.7B it owes. Turns out [20 2019 Z06 Corvettes]( that no one upgraded to weren’t the key to long term success. The move adds Hertz to the growing sh*t list of high profile bankruptcies caused by the pandemic. The company which began renting Ford’s Model-Ts in 1918 survived the Great Depression, World War II, and multiple surges in oil prices... but apparently has been [building up a little too much (read: a literal f*ck ton) debt]( along the way. Avis’ biggest competitor cut 16k (12k permanently) workers in March and scaled back its vehicle acquisitions by 90%. Despite shedding an estimated $2.5B in costs, literally no revenue makes it hard to run a business. Hertz shares dropped 7.5% on Friday. Indicator light But you can’t blame it all on ‘rona boi’s reckless driving... Hertz has been careening downhill with the brakes cut ever since it “upgraded” its fleet on the cheap. Instead of opting for SUVs and cars people actually wanted to drive, it bought sedans. Nobody likes the PT f*ckin' Cruiser. After missing a payment to the creditors that financed its new fleet in April, the bankruptcy writing was on the wall. On its earnings call earlier this month, it warned investors that management had “substantial doubt” in the company’s ability to remain a going concern. That’s certainly not the accounting jargon you want to hear on a Monday morning… FFS, Hertz [has had four CEOs]( in the last six years and announced that current CEO Kathryn Marinello, who managed to increase revenue by 16% during 2018 and 2019, is stepping down, with operations chief Paul Stone taking his place. He would probably be more excited to captain the Titanic at this point. Never let go, Paul… The bottom line... The one saving grace? At least Hertz doesn’t have to listen to Carl Icahn’s crazy-ass anymore... The activist investor [owns (owned?) 38.9%]( of the company’s public shares and has a penchant for throwing his weight around. It’s no surprise that Icahn’s intervention coincides with Hertz’s struggles, as he first bought in back in 2014. Thanks, Carl. [Image] Sometimes Heroes Do Wear Capes Join Jeff Williams on Thursday May 28th at 3pm ET—LIVE [Alternate text]( For A Real-Time Stock Scan Aimed At Catching Tomorrow’s Fast Mover—Today [Register Now]( [I'm an image] ☑️Arvind brought his scissors. IBM has announced its first job cuts under its new CEO Arvind Krishna. The tech company is [reducing its workforce]( amid the coronavirus pandemic, as it aims to become more “agile.” And while it did not specify how many would get the ax, a person familiar with the bloodbath estimates it is in the "several thousand" ballpark. Mr. Krishna took over in April, as the company was struggling amid a decrease in software sales, but IBM’s challenges predate COVID-19. Its stock price, which is currently $118, is lower than it was a decade ago ($125) and it has struggled with declining revenue over the past few years. ☑️Welcome back. The NYSE (ever heard of it?) [is opening up its brick and mortar location again]( after a two-month hiatus. However, things might look a bit different on the trading floor. Only a quarter of the traders will be allowed in and they must not take public transit to get there. That’s a long walk from Greenwich. Traders must also wear masks and sign a waiver that protects the NYSE from a lawsuit if they get sick at the exchange. This brings a whole new meaning to the term [‘Die for the DOW’.]( ☑️STAY CALM. Alibaba Group reported Q4 earnings Friday. And profit fell... wait for it... 88% from the same period a year ago. However, the tech company urges you that there’s no reason to panic… [we have to keep our composure!]( The catalyst for the decline in net income came in the form of a $1.09B net investment loss thanks to the coronavirus’s impact on the stock market, which battered its equity investments. ICYMI... stonks went down. On a positive note... revenue rose 22%, exceeding expectations and showing that Chinese consumer spending remained strong for the quarter ending in March. Additionally, Chinese commercial retail sales grew 21% from a year ago, mostly driven by [ad sales](. Cloud computing sales also rose 58% from the same period last year. It’s (the money) in the cloud. ☑️Nice try, Virgin. Ugh, heard that before. Richard Branson’s Virgin Orbit [had a rocket launch]( on Monday, with the goal of reaching space. However, the mission ended in failure only three minutes after the rocket was released from the plane carrying it. The exact issue wasn’t identified. “I swear this never happens.” The test did confirm a clean release from the aircraft and everyone did return back to base safely, but everyone still went home dissatisfied. The company’s ultimate goal is to compete with Elon’s SpaceX and launch small satellites into space. Meanwhile, Elon is busy [baby-making to ‘bitcoin](’ and preparing for [SpaceX’s May 27]( launch of two NASA astronauts to the International Space Station. 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