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Revisiting Hertz's Amazon Partnership 5 Months Later: The Good, the Bad, the Risk
Submitted by Jordan Chussler. First Published: 2/3/2026.
In Brief
- After a net income loss of $2.8 billion in 2024, Hertz hoped that a strategic partnership with Amazon could help offset its mounting depreciation costs.
- According to the company’s management, the aim was to see $2,000 or more in incremental margin benefit per vehicle sold versus wholesale channels.
- That has yet to materialize on Hertz’s books, with free cash flow contracting 442% in Q3 2025 and the stock having lost 10% since the deal was signed.
It has been a rough ride for shareholders of Hertz Global Holdings (NASDAQ: HTZ). Over the past five years, shares are down more than 79%; since the stock's one-year high on April 24, 2025, they have fallen nearly 43%.
Last summer, the company—looking for a spark—signed a strategic partnership with Amazon (NASDAQ: AMZN) to move some of its aging and unpopular inventory.
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Watch the interview revealing these four market forces.The deal with Amazon Autos is designed to sell Hertz's used cars by giving "customers a faster, more convenient way to buy their [pre-owned] car online," providing access to thousands of listings eligible for online purchase and pick-up at 45 locations nationwide.
Hertz also offers flexible financing options, a 12-month/12,000-mile limited powertrain warranty, 24-hour roadside assistance, and a 7-day/250-mile buyback guarantee.
The initiative was intended to help offset the impact of the company's multi-billion-dollar net loss in 2024, which stemmed in part from an aggressive pivot to an EV-focused fleet and the subsequent depreciation of those vehicles after price cuts from Tesla (NASDAQ: TSLA).
Here's how the stock has performed in the five months since inking the deal with Amazon.
Hertz's Strategic Partnership With Amazon Aimed to Right the Ship
After the deal was announced on Aug. 20, 2025, outlets like CNBC called it a threat to auto dealers, and HTZ shares initially surged on the news.
But despite the success of online used-car retailers like Carvana (NYSE: CVNA), Hertz's partnership with Amazon depends on convincing customers to buy a high-value item—often the second most expensive purchase for a household—on a platform where they routinely buy everyday items.
During the company's Q3 2025 earnings call, CEO Gil West said, "by scaling our direct-to-consumer and e-commerce channels, we're positioned to capture $2,000 or more incremental margin benefit per vehicle versus wholesale channels."
However, Hertz does not disclose total sales figures for vehicles sold exclusively through Amazon Autos, leaving investors to look to the company's financial statements for clues.
Hertz's Financials Are Not Inspiring Hope
One clear signal is the company's accumulated depreciation, which rose every quarter from Q3 2024 ($308 million) to Q3 2025 ($1.33 billion)—an increase of nearly 332%. Rising accumulated depreciation generally indicates aging assets that are losing value on the books.
Over the same period, Hertz's plant, property, and equipment (PP&E) declined by more than 4%, long-term debt increased nearly 7%, and revenue growth contracted each quarter.
Perhaps most troubling, free cash flow swung dramatically, with growth declining by roughly 442% in Q3 2025. Over the five months since announcing the Amazon partnership, HTZ shares are down nearly 10%, while AMZN shares are up nearly 9%.
After reporting annual EPS of $1.39 in 2023, Hertz posted a loss per share of $9.34 in 2024. The weakness continued into 2025, with EPS losses of $1.44 and $0.95 in Q1 and Q2 before a surprise earnings beat of $0.59 in Q3.
That momentary turnaround has done little to restore confidence among shareholders or analysts as the rental and mobility company tries to convince investors it can reverse course.
Analysts' Tale of Two Companies
Amazon, which reports full-year and Q4 2025 earnings on Thursday, Feb. 5, remains favored by analysts; the same cannot be said for Hertz.
AMZN carries a consensus Moderate Buy rating, with 55 of 59 analysts assigning a Buy and an average 12-month price target that implies nearly 22% upside.
By contrast, HTZ has a consensus Reduce rating and no Buy ratings. The average 12-month price target implies just over 8% potential upside, which may be cold comfort to investors who have already suffered large losses.
Adding to the pressure, short interest is elevated at 18.41%, or about 51 million of the 311.6 million shares outstanding.
Hertz scores higher than just 23% of companies evaluated by MarketBeat and ranks 109th out of 130 stocks in the transportation sector.
According to TradeSmith, the company carries a middling financial health score that places it in the Yellow Zone, where HTZ has spent most of the past six months.
While Hertz does not report full-year and Q4 2025 earnings until Feb. 12, the company's net income swung from $616 million in 2023 to a loss of $2.8 billion in 2024—a swing of roughly $3.4 billion.
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