Private prison companies have taken a financial hit in the past week as President-elect Joe Biden’s win became apparent. Stock prices for the country’s two largest prison companies, the GEO Group and CoreCivic, have fallen 14 percent and 19 percent respectively since Election Day.
Biden’s campaign platform, like Hillary Clinton’s in 2016, promised that he would end the federal government’s use of private prisons.
That’s a serious threat to both GEO and CoreCivic, which depend on federal contracts with the Bureau of Prisons, Immigrations and Customs Enforcement and the US Marshals Service for more than 50 percent of their revenue.
Private prison investors are adept at reading the political winds, and their consensus is that a Democratic president is bad news.