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Will DOGE Take a Bite Out of This Spy Firm’s Stock? That’s Classified - WSJ

1. Booz Allen's stock dropped 40% since the election. 2. Federal spending on consultants is decreasing under the current administration. 3. 98% of revenue depends on U.S. government, mostly classified contracts. 4. Opaque nature of contracts limits investor insight and evaluation. 5. Taking Booz Allen private could be a potential solution.

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FAQ

Why Very Bearish?

The significant drop in stock price combined with federal budget cuts indicate severe revenue risks. Historically, uncertainties in defense contracting can lead to slumps in stock performance.

How important is it?

The article highlights severe risks to Booz Allen’s business model, indicating a high likelihood of continued price pressure.

Why Long Term?

Ongoing federal spending constraints may persist, affecting Booz Allen's future contracts and earnings potential.

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