8 Stock Market Winners and Losers From DOGE Cuts
8 Stock Market Winners and Losers From DOGE Cuts
One of President Donald Trump's first actions in his second term was to put controversial Tesla Inc. (ticker: TSLA) CEO Elon Musk in charge of the new Department of Government Efficiency (DOGE). DOGE has been tasked with implementing aggressive federal spending cuts across several government agencies.
The goal of DOGE is to streamline government operations and save taxpayer dollars, but large cuts to government operations will also have negative side effects for industries that rely on government contracts. Here's a look at some stocks that could potentially be big winners and losers as DOGE shakes up federal spending:
Loser: Tetra Tech Inc. (TTEK)
Winner: Palantir Technologies Inc. (PLTR)
Loser: Science Applications International Corp. (SAIC)
Winner: Wells Fargo & Co. (WFC)
Loser: Leidos Holdings Inc. (LDOS)
Winner: Booz Allen Hamilton Holding Corp. (BAH)
Loser: Lockheed Martin Corp. (LMT)
Winner: Tesla Inc. (TSLA)
The goal of DOGE is to streamline government operations and save taxpayer dollars, but large cuts to government operations will also have negative side effects for industries that rely on government contracts. Here's a look at some stocks that could potentially be big winners and losers as DOGE shakes up federal spending:
Loser: Tetra Tech Inc. (TTEK)
Winner: Palantir Technologies Inc. (PLTR)
Loser: Science Applications International Corp. (SAIC)
Winner: Wells Fargo & Co. (WFC)
Loser: Leidos Holdings Inc. (LDOS)
Winner: Booz Allen Hamilton Holding Corp. (BAH)
Loser: Lockheed Martin Corp. (LMT)
Winner: Tesla Inc. (TSLA)
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Loser: Tetra Tech Inc. (TTEK)
Tetra Tech provides consulting and engineering services focused on environmental, water, renewable energy, and international infrastructure and development. Unfortunately for Tetra Tech, the company has regularly secured large government contracts with the U.S. Agency for International Development. USAID provides billions of dollars in humanitarian aid overseas. Trump and Musk have targeted the agency, with Musk going as far as calling it a "criminal organization." As a result, DOGE has cancelled several Tetra Tech contracts totaling more than $125 million. At this point, the future of USAID is uncertain, and Tetra Tech certainly can't rely on securing any new government contracts for the time being.
Tetra Tech provides consulting and engineering services focused on environmental, water, renewable energy, and international infrastructure and development. Unfortunately for Tetra Tech, the company has regularly secured large government contracts with the U.S. Agency for International Development. USAID provides billions of dollars in humanitarian aid overseas. Trump and Musk have targeted the agency, with Musk going as far as calling it a "criminal organization." As a result, DOGE has cancelled several Tetra Tech contracts totaling more than $125 million. At this point, the future of USAID is uncertain, and Tetra Tech certainly can't rely on securing any new government contracts for the time being.
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Winner: Palantir Technologies Inc. (PLTR)
Palantir is a tech company that builds software platforms that can analyze massive amounts of data using machine learning and AI technology. Palantir is one of the largest U.S. government contractors. In the most recent quarter, Palantir's U.S. government revenue grew 45% year over year to $343 million, or about 41% of the company's overall revenue. At first glance, a company like Palantir may seem like a target for DOGE. However, Bank of America analyst Mariana Perez Mora has said Palantir's focus on efficiencies such as operationalizing data and accelerating decision making put it in-line with DOGE's tech-centric approach to cuts.
Palantir is a tech company that builds software platforms that can analyze massive amounts of data using machine learning and AI technology. Palantir is one of the largest U.S. government contractors. In the most recent quarter, Palantir's U.S. government revenue grew 45% year over year to $343 million, or about 41% of the company's overall revenue. At first glance, a company like Palantir may seem like a target for DOGE. However, Bank of America analyst Mariana Perez Mora has said Palantir's focus on efficiencies such as operationalizing data and accelerating decision making put it in-line with DOGE's tech-centric approach to cuts.
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Loser: Science Applications International Corp. (SAIC)
Science Applications International provides enterprise IT and technical engineering services for U.S. government agencies. The company has roughly 1,800 active government contracts with the Army, Air Force, Navy, NASA, Justice Department, Department of Homeland Security, State Department and other agencies. CFRA analyst Caydee Blankenship said the good news for SAIC investors is that the company's focus on high priority areas such as cybersecurity, analytics and enterprise IT align the company with key DOGE initiatives. But given the sheer number of SAIC's government contracts, the risk of major DOGE disruption is too high to ignore, and CFRA has a "sell" rating for SAIC.
Science Applications International provides enterprise IT and technical engineering services for U.S. government agencies. The company has roughly 1,800 active government contracts with the Army, Air Force, Navy, NASA, Justice Department, Department of Homeland Security, State Department and other agencies. CFRA analyst Caydee Blankenship said the good news for SAIC investors is that the company's focus on high priority areas such as cybersecurity, analytics and enterprise IT align the company with key DOGE initiatives. But given the sheer number of SAIC's government contracts, the risk of major DOGE disruption is too high to ignore, and CFRA has a "sell" rating for SAIC.
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Winner: Wells Fargo & Co. (WFC)
Wells Fargo is one of the largest U.S. banks, lending mostly within the U.S. market. During Trump's first administration, he treated the banking industry well by supporting deregulation. DOGE has taken deregulation to another level by aiming to shutter the Consumer Financial Protection Bureau (CFPB). The CFPB was created in the aftermath of the 2008 financial crisis to help protect Americans from financial fraud and predatory lending practices in the banking industry. Wells Fargo has been hit particularly hard by regulators for predatory business practices and has been subject to a punitive Federal Reserve asset cap since 2018.
Wells Fargo is one of the largest U.S. banks, lending mostly within the U.S. market. During Trump's first administration, he treated the banking industry well by supporting deregulation. DOGE has taken deregulation to another level by aiming to shutter the Consumer Financial Protection Bureau (CFPB). The CFPB was created in the aftermath of the 2008 financial crisis to help protect Americans from financial fraud and predatory lending practices in the banking industry. Wells Fargo has been hit particularly hard by regulators for predatory business practices and has been subject to a punitive Federal Reserve asset cap since 2018.
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Loser: Leidos Holdings Inc. (LDOS)
Leidos provides technology services and solutions to the defense and intelligence industries and is highly exposed to U.S. government cybersecurity spending. According to the Wall Street Journal, out of the more than 500 companies posted on the DOGE website that have had contracts canceled, Leidos' more than $250 million in canceled contracts are the most valuable of all. About 87% of Leidos' revenue comes from government contracts, suggesting significant DOGE risk for investors. Blankenship says Leidos' "NorthStar 2030" strategy is focused on high-growth government modernization strategies, but she projects just 3% revenue growth for Leidos in 2025 and gives Leidos a "hold" rating.
Leidos provides technology services and solutions to the defense and intelligence industries and is highly exposed to U.S. government cybersecurity spending. According to the Wall Street Journal, out of the more than 500 companies posted on the DOGE website that have had contracts canceled, Leidos' more than $250 million in canceled contracts are the most valuable of all. About 87% of Leidos' revenue comes from government contracts, suggesting significant DOGE risk for investors. Blankenship says Leidos' "NorthStar 2030" strategy is focused on high-growth government modernization strategies, but she projects just 3% revenue growth for Leidos in 2025 and gives Leidos a "hold" rating.
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Winner: Booz Allen Hamilton Holding Corp. (BAH)
Booz Allen Hamilton specializes in consulting, analytics and cyber solutions for defense, civil and intel-related government agencies. Booz Allen generates a whopping 98% of its revenue from government contracts. The stock's underperformance since the election suggests investors are concerned about the potential negative impact DOGE could have on those contracts. However, Mora says the company could be a key beneficiary of DOGE's cost-cutting efforts. She says Booz Allen helps the government integrate potentially cost-saving commercial software solutions by advising, managing and overseeing key programs. Because of its focus on improving efficiency, Booz Allen Hamilton may actually benefit from DOGE's optimization efforts.
Booz Allen Hamilton specializes in consulting, analytics and cyber solutions for defense, civil and intel-related government agencies. Booz Allen generates a whopping 98% of its revenue from government contracts. The stock's underperformance since the election suggests investors are concerned about the potential negative impact DOGE could have on those contracts. However, Mora says the company could be a key beneficiary of DOGE's cost-cutting efforts. She says Booz Allen helps the government integrate potentially cost-saving commercial software solutions by advising, managing and overseeing key programs. Because of its focus on improving efficiency, Booz Allen Hamilton may actually benefit from DOGE's optimization efforts.
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Loser: Lockheed Martin Corp. (LMT)
Lockheed Martin is one of the largest U.S. defense contractors. Conventional wisdom on Wall Street is that defense contractors benefit from Republican administrations. However, DOGE is reportedly aiming to target billions of dollars in spending cuts for the Defense Department, and Musk has been explicitly critical of Lockheed's F-35 fighter jets. Musk has called the F-35 makers "idiots" and said the jets are "obsolete in the age of drones." Some estimates say the lifetime cost of the F-35 could exceed a staggering $2 trillion through 2088, so any threat to this lucrative program is bad news for Lockheed.
Lockheed Martin is one of the largest U.S. defense contractors. Conventional wisdom on Wall Street is that defense contractors benefit from Republican administrations. However, DOGE is reportedly aiming to target billions of dollars in spending cuts for the Defense Department, and Musk has been explicitly critical of Lockheed's F-35 fighter jets. Musk has called the F-35 makers "idiots" and said the jets are "obsolete in the age of drones." Some estimates say the lifetime cost of the F-35 could exceed a staggering $2 trillion through 2088, so any threat to this lucrative program is bad news for Lockheed.
Re: 8 Stock Market Winners and Losers From DOGE Cuts
Winner: Tesla Inc. (TSLA)
Musk's pivot to political activism has coincided with a sharp drop in Tesla's share price so far in 2025. However, it has also coincided with a stagnation of Tesla's underlying business. In the most recent quarter, Tesla reported just 2% revenue growth and an 8% decline in automotive revenue. Only time will tell just how much (if any) permanent damage Musk has done to Tesla's brand. But DOGE has given Musk the opportunity to target several government agencies that were actively investigating Tesla, including the Department of Transportation, the Department of Justice and the Securities and Exchange Commission.
Musk's pivot to political activism has coincided with a sharp drop in Tesla's share price so far in 2025. However, it has also coincided with a stagnation of Tesla's underlying business. In the most recent quarter, Tesla reported just 2% revenue growth and an 8% decline in automotive revenue. Only time will tell just how much (if any) permanent damage Musk has done to Tesla's brand. But DOGE has given Musk the opportunity to target several government agencies that were actively investigating Tesla, including the Department of Transportation, the Department of Justice and the Securities and Exchange Commission.