More Articles | Free Reports | Premium Services “The guy is our Einstein.” That’s how JPMorgan Chase boss Jamie Dimon described Elon Musk last month on CNBC. Einstein was a genius. But he didn’t build a single company. Musk, on the other hand, is a successful entrepreneur… and the richest man in the world. He built the first global online payments processor, PayPal… the world’s dominant spaceflight company, SpaceX… and the world’s most valuable car company, Tesla. He also co-founded OpenAI, one of the world’s most successful artificial intelligence (AI) companies, before founding his own AI company, xAI. xAI just released Grok-3. It’s a contender for the best AI chatbot on Earth. Musk is not just our Einstein. He’s also our John D. Rockefeller… our Thomas Edison… and our Henry Ford rolled into one. Now, he’s taking his unconventional methods to the federal government by way of the Department of Government Efficiency (DOGE). His mission is to cut the bloated government workforce… and gluttonous government spending. And as investors, we can profit. As we’ll explore today, to make the government run more efficiently… at lower cost… will require the wide-scale deployment of AI. And AI-related companies providing services the DOGE team is looking for have a massive opportunity in front of them. I’ve already given my paid-up subscribers of my Freeport Strategic Opportunities advisory the chance to make gains of 1,200% on one of them. But don’t worry if you’ve missed out so far. We’re just at the start of what’s shaping up to be one of the world’s most powerful – and most profitable – market megatrends. And today, I’ll get you started with a ticker symbol to look into. First, to understand what Musk will do in Washington, we need to understand what he did at Twitter. | Recommended Link | | | | He's made a lot of people wealthy over his 40-year career on Wall Street. But his 2016 call on Nvidia — when he recommended it at just $1 per share — might be his most legendary. Now Louis Navellier, the analyst Bloomberg and Forbes turn to for market insights, has identified what he believes could be an even bigger opportunity. It's a small chip maker that reminds him of early-stage Nvidia, before it soared as high as 7,394%. He's giving away the name and ticker symbol completely free in his latest presentation. But he warns: once Wall Street catches on, the window for maximum gains could close quickly. Click here to see it. | |
Zero-Based Budgeting In October 2022, Musk bought the social media company for $44 billion and rebranded it as X. But he didn’t just take on the company’s liberal bias. He quickly went about slashing costs. He fired top executives, dissolved the board, and laid off nearly 80% of the company’s staff. This included the elimination of entire teams – including communications, human rights, accessibility – as well as engineers. He also cut $1 billion from the company’s cloud computing costs… closed global offices… fired contractors… and ended luxury perks for employees. Bye bye wellness programs, home internet reimbursements, and corporate credit cards. He even stopped providing free meals for employees, which he said cost $13 million a year. Musk took an approach known as zero-based budgeting. This is a budgeting method where every expense must be justified from scratch for each new budget period, rather than automatically carrying over last year's budget. You start from zero and justify every cost, rather than assuming that past spending should continue. And it worked… According to a report in The Wall Street Journal, X has reported to investors 2024 adjusted EBITDA of $1.25 billion on revenue of $2.7 billion. (That stands for earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA measures of a company’s true operating performance by stripping items like restructuring costs, stock-based compensation, legal settlements, or one-time write-offs, which can distort financial results.) That smashes Twitter’s highest ever adjusted EBITDA of $682 million on sales of $5 billion, which it recorded in 2021. Critics called him crazy. Look who’s laughing now. These days, Musk is taking his cost cutting expertise and applying to an even more overinflated organization – U.S. federal government. AI-First Strategy When President Trump announced DOGE, many were skeptical. I get that. For a long time, nothing has really changed in Washington. But this time, there are reasons for hope… Musk has brought in a team of crack computer programmers to help him. That includes 23-year-old Luke Farritor. As a student, he won a $700,000 prize for using AI to decipher a scroll found in the Roman city of Pompeii that was destroyed when Vesuvius erupted nearly 2,000 years ago. Farritor is one of six young programming whizzes Musk has hired to help him modernize federal technology and boost efficiency. This involves updating government systems. Many government agencies rely on outdated technology. By bringing in skilled programmers, Musk aims to update these systems and make them more secure, efficient, and capable of handling contemporary challenges His team is also working on building tools that can analyze vast amounts of data. This will help the government employees make more informed decisions… especially when it comes to new policies. The DOGE team is also looking for ways to cut repetitive tasks and create faster and more reliable government services. Together, this will make the federal government efficient and leaner – meaning fewer wasted taxpayer dollars in the end. And Musk and his team will do this by harnessing the power of AI. It’s going to play a central role in government and take over a lot of the work currently done in an outdated way by humans. We know this from Thomas Shedd, a former Tesla engineer who now runs the technology arm of U.S. General Services Administration (GSA). It’s the agency tasked with managing office buildings, contracts, and IT infrastructure across the federal government. According to Shedd, GSA is pursuing an “AI-first strategy.” This includes the development of GSAi – a custom AI chatbot that will help streamline GSA operations. And all of this is great news not only for Americans… but also for investors in AI companies with U.S. government contracts. The big question now is: How exactly do you do that? | Recommended Link | | | | A website that shows you the biggest potential jumps on 5,000 stocks – to the day – weeks before they occur. In 2024 alone, it would’ve pointed to gains of 250% in 38 days on (TTWO)… 101% in 10 days on (WSM)… 353% in 48 days on (AON) and more in studies, with 83% backtested accuracy. Claim one free year of access through this special offer. | |
How to Play the DOGE-Fueled AI Surge Take Peter Thiel’s Palantir Technologies (PLTR). It’s a data analytics and software company. It specializes in using AI to help the governments, the military, intelligence agencies, and private business make sense of massive datasets to improve decision-making and operational efficiencies. It’s been on a rocket ride… Going back to September 2020 when the company made its public debut, its shares are up more than 1,500%. And as you can see on the right of the chart, it’s gone parabolic since the announcement of DOGE And Palantir isn’t the only company benefiting from the DOGE-fueled AI surge. Another AI company that’s been soaring lately is BigBear.ai (BBAI) Like Palantir, it helps organizations – including governments – to drive operational efficiencies by using AI to analyze complex data sets. I recommended BigBear’s warrants to readers of Freeport Strategic Opportunities as a way to play the AI trend. If you’re not familiar with them, warrants allow you to control shares at a fraction of the cost of buying them directly. This gives you leverage – or extra oomph – over moves in the underlying stock. BigBear is tiny compared with Palantir. It has a market value of $2.3 billion versus Palantir’s market value of $292 billion. But BigBear is helping the U.S. military – including the Army and Navy – modernize its operation. For instance, it’s helping the U.S. Army consolidate 15 legacy systems into one platform to help it see its entire global force structure in one place. And just like with Palantir, investors are piling in. Since July 2023, when I recommended it, Big Bear’s shares are up 323%. But by speculating on BigBear’s growth using the warrants, those of my readers who participated in the opportunity are sitting on 1,300% gains. I’m not recommending you buy BigBear shares or its warrants today. Prices are too high at current levels. But there are AI-related exchange-traded funds (ETFs) that give you broad exposure to this trend. These are more the set-and-forget type plays. You buy them now, hold for the long term, and reap the rewards over time. One I like is the Global X Artificial Intelligence & Technology ETF (AIQ). It tracks a basket of companies poised to benefit from the growth and innovation in artificial intelligence and big data technologies – including Palantir Technologies. But regardless of how you play it, AI is about to revolutionize not only the private sector, but government as well. This trend is still in its early stages. And if Elon Musk has anything to say about it, it’s set to become one of the world’s most powerful market megatrends… So, now is a great time to get in. | 