Destiny Tech100 Inc saw its stock surge 5.89% in pre-market trading on Thursday as investors reacted positively to Elon Musk's aggressive cost-cutting measures at the federal government level.
The tech giant, which has a significant government contracts portfolio, stands to benefit from Musk's Department of Government Efficiency (DOGE) initiative aimed at slashing bloated budgets and streamlining bureaucracy. As DOGE announced a spate of cancellations for diversity, equity and inclusion (DEI) contracts, consultancy agreements, and unused federal building leases, investors are betting that Destiny Tech100 Inc could secure more lucrative government deals in a leaner federal environment.
Moreover, DOGE's crackdown on the United States Agency for International Development (USAID) and potential merger of its operations into the State Department have fueled speculation that Destiny Tech100 Inc's cybersecurity and data analytics services could see higher demand from the restructured foreign affairs agencies.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.