Accenture Plunges as Elon’s Savage Rampage Through Government Contracts HITS Wall Street…

Accenture just found out the hard way that Elon Musk’s cost-cutting obsession isn’t just limited to Twitter servers and Tesla’s R&D budget—it’s coming for government consulting contracts too. Shares of Accenture tanked 7% after CEO Julie Sweet warned that the Trump administration’s new spending crackdown—led by Musk’s infamous DOGE, is starting to hit revenues.

(Source: Giphy) 

In short, on the company’s latest earnings call, CEO Julie Sweet admitted that new government work has slowed dramatically since Trump’s administration took office in January. Apparently, when you put Musk in charge of the Department of Government Efficiency (DOGE)—he starts asking annoying questions like: “What exactly do these consultants do?", "Why are we paying these firms millions for PowerPoints?", Can I automate this with AI?” Aaaand, just like that, Accenture’s revenue stream has taken a massive blow to the chest. 

The reason? Well it all comes down to the fact that the U.S. government accounts for 8% of Accenture’s $16.7 billion quarterly revenue, and now the General Services Administration is forcing agencies to justify their consulting contracts or cancel them outright. And guess what? Accenture has already had 10 contracts killed under this administration, including a $5 million deal that was supposed to run through 2027. Meaning, for a company that’s made a career out of PowerPoint presentations and billable hours, this is very bad news.

(Source: Forbes) 

On the other hand though, Accenture isn’t alone in the DOGE death spiral. Other major consulting firms feeding off government contracts—including Deloitte, Booz Allen Hamilton, and IBM—are all under scrutiny. In fact, Booz Allen’s stock fell 8.1% on the news, while Cognizant dropped 3%. Meanwhile, McKinsey, Bain, and BCG are probably watching from their mahogany boardrooms, sipping expensive single malt, and laughing their a$$es off. 

Naturally, Sweet tried to put a positive spin on things, saying Accenture could help the government "consolidate, modernize, and reinvent" federal operations. But still, all that does for investors is put a bow on a pig. Accenture has already scrapped its global diversity and inclusion goals to align with Trump’s federal contractor policies. Now, they’ll have to convince Musk & Co. that they’re worth keeping around.

(Source: CNBC) 

Adding insult to injury, Accenture just scrapped its global diversity and inclusion goals after Trump issued an executive order forcing federal contractors to prove their DEI programs weren’t violating anti-discrimination laws. So now they’re losing contracts AND pissing off their own employees.

So yeah, Accenture has officially “F’ed around and found out” that when your biggest client (read: Uncle Sam) decides your expendable, your stock takes a beating. At the end of the day, DOGE isn’t just a meme—it’s a wrecking ball for the consulting industry’s easy-money government contracts. And if Musk gets his way, the days of endless billable hours for vague "strategic transformations" might finally be over.

(Source: Giphy) 

Now whether that’s good or bad depends on your own point of view, but for investors—it’s not great. Meaning, keep your eyes on this story and place your bets accordingly, friends. As always, stay safe and stay frosty! Until next time… 

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock—right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside this weeks Stocks.News premium article—click here to check it out ASAP! 

Stocks.News holds postions in Tesla as mentioned in the article.