Avis Budget Group Inc. has seen its stock price soar to $730.65, achieving an impressive 655% return over the past year and a market capitalization of $25.77 billion. Despite this success, the stock has faced scrutiny regarding its valuation, with InvestingPro labeling it as potentially overvalued. Recently, Deutsche Bank downgraded the stock from Buy to Hold, maintaining a price target of $128. This downgrade was attributed to fundamental analysis, despite recognizing the stock's growth potential. Additionally, the company announced an at-the-market equity offering program to sell up to 5 million shares, which triggered a 10% decline in stock price as investors reacted to the dilution of shares. The market environment is further complicated by a significant short squeeze, with 62% of the stock's free float being shorted, indicating a high level of speculation surrounding Avis Budget Group.