Well, it finally happened. Trump's back in office, and you know what that means: private prison stocks are popping off like champagne bottles at Mar-a-Lago. Apparently, nothing gets investors more excited than the prospect of locking people up—especially when it's tied to one of Trump's favorite talking points: illegal immigration, baby.
(Source: Giphy)
In short, on the Wednesday after Trump’s historic comeback, stocks in CoreCivic shot up 29%, while Geo Group—never one to be outdone—decided to make it a cool 32% surge. Why the sudden spike? Well, again, investors are practically salivating over Trump’s pledge to go full throttle on immigration enforcement. They’re betting that the detention centers run by these companies are about to fill up faster than a Costco parking lot on Black Friday.
(Source: Fortune)
Of course, Trump didn’t “walz” (ha! Get it?) into the White House on his own. Elon Musk, the world’s richest troll, has successfully managed to make himself a central figure in this election cycle as well - where he’s been pushing the narrative that illegal immigration is ruining America. The culprit? Democrats, not surprisingly, are supposedly flooding the country with migrants, fast-tracking them to citizenship, and leveraging their incoherence to turn every swing state into a mini-California.
(Source: Giphy)
Whereas, Musks and every American patriot’s solution is to put Trump back in office to stop the madness. And it looks like investors took the hint, betting big on companies like Geo Group and CoreCivic, which have a long history of profiting from the detention of undocumented immigrants. Meaning, Musk’s influence is expected to push Trump’s immigration crackdown into overdrive, and private prison companies are already rubbing their hands together in anticipation.
(Source: Giphy)
What’s more is that this isn’t just campaign fluff that falls on the floor after getting what Trump wants. It’s real, and Trump didn’t waste any time getting down to business. He’s already promised the “largest deportation in the history of our country.” For more context, according to VP-Elect, JD Vance, they’re starting with a casual one million deportations. You know, just to get things warmed up.
(Source: ABC News)
For CoreCivic and Geo Group, this is the equivalent of hitting the jackpot. These companies have been in bed with U.S. Immigration and Customs Enforcement (ICE) for years, and during Trump’s first term, they made out like bandits. In 2019, the number of migrants in detention hit 55,000. This time? Those numbers could skyrocket.
(Source: Yahoo Finance)
Additionally, this isn’t just about filling beds either - it’s about cashing in on government contracts. Whereas, with Trump back in charge, these companies are ready to make it rain. And who cares if it’s raining misery? There’s money to be made, folks.
Now with that said, before you go all in on CoreCivic or Geo, there’s one problem: states need to cooperate with ICE, and not everyone is eager to play ball with Trump’s deportation agenda. Some speculate that Trump will have to resort to his favorite tactic—threatening to withhold federal funding—to force states into compliance. But if there’s one thing Trump loves, it’s a good ol’ fashioned showdown with local governments. Why? Because, the dude always wins, that’s why.
(Source: Giphy)
In the end, the main takeaway is that Trump’s win has private prison companies seeing dollar signs, and they’re gearing up for a massive payday. CoreCivic and Geo Group are officially entering their second golden age, where they are poised to cash in big as immigration detention ramps up. So if you're looking for a morally questionable investment, now might be the time to buy. Because if history tells us anything, it’s that when Trump’s in office, there’s always money to be made… even in places you least expect.
In the meantime, keep an eye on the other industries that Trump and his administration have a hard-on for and as always stay safe and stay frosty, friends! Until next time…
P.S. Trump has unleashed a golden era in prison stocks, but so what? Especially since our last Wild Friday Alert popped off with a 116% jump in minutes—and we’ve been hitting at least one 100%+ winner every single week on average since we started.The best part? We just dropped a brand new alert that’s set to explode right here.
Stocks.News does not hold positions in companies mentioned in the article.
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