Newman: Where Musk has cut the most so far

Published On Feb 19, 2025, 4:30 PM

Elon Musk's government efficiency commission, known as the DOGE commission, has begun its work of cutting the federal budget, claiming to have saved billions through canceled contracts, mostly affecting agencies like USAID and the Department of Education. However, there are questions about the true nature of these 'savings,' as many cuts involve contracts that would not result in immediate financial relief. The situation has led to concerns about potential job losses among federal workers and fears of a recession in areas reliant on federal employment. Investors are watching closely as the reality of these budget cuts and staff reductions could have broader economic implications.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

CVNA

Negative

The ongoing cuts to federal spending and potential layoffs of government employees may lead to reduced consumer spending, which could impact various sectors negatively. Companies that rely heavily on consumers from federal jobs or government contracts might face downturns. Moreover, if the situation escalates to a recession, it would likely affect many businesses. Investors should monitor companies connected to government contracts, particularly in sectors like construction and technology.

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HIMS

Positive

Conversely, companies that focus on cost-cutting solutions or lean operational efficiencies may experience positive momentum as federal agencies look to streamline their processes. Investors might find opportunities in firms that can capitalize on the efficiency push. Additionally, sectors like management consulting could see increased demand as agencies seek help navigating the cuts.

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