Index Investing News
Saturday, August 30, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Elon Musk ripped an organization for storing authorities information in a mine. Now, DOGE might give Iron Mountain a lift

by Index Investing News
February 14, 2025
in Markets
Reading Time: 5 mins read
A A
0
Home Markets
Share on FacebookShare on Twitter


A person exits the Iron Mountain Inc. information storage facility in Boyers, Pennsylvania, U.S., on Tuesday, Feb. 13, 2018. The underground information middle, situated in a former limestone mine, shops 200 acres of bodily information for a lot of shoppers together with the federal authorities.

Stephanie Strasburg | Bloomberg | Getty Photographs

Elon Musk stood beside a seated President Donald Trump within the Oval Workplace on Tuesday and ranted about examples of presidency inefficiency his DOGE division was in search of to root out of the federal authorities.

“There is a limestone mine the place we retailer all of the retirement paperwork…This mine appears like one thing out of the ’50s, as a result of it was began in 1955, so it appears prefer it’s, like, a time warp,” stated Musk, who went on to clarify that the mine’s elevator velocity determines the tempo at which the federal government can course of the retirements of federal staff.

“Would not that sound loopy?,” he requested.

That mine is run by a little-known firm named Iron Mountain, whose shares have been hit this week within the wake of Musk’s feedback.

However Iron Mountain CEO Invoice Meaney on Thursday stated that he sees the brand new authorities effectivity initiative led by Musk as a “development alternative,” given the corporate’s different work in digital transformation with federal businesses.

“We see this as a continued alternative for the corporate,” Meaney advised analysts throughout Iron Mountain’s Thursday morning earnings name. Earlier, he stated this digitizing arm of the corporate aligns with the “drive to be extra environment friendly” throughout the federal authorities and famous “current curiosity” in Iron Mountain’s federal enterprise dealings.

Meaney stated Iron Mountain rakes in $130 million in income from its information middle and digitization transformation companies. That determine dwarfs the $10 million earned from the federal government storing bodily documentation in websites just like the namesake Iron Mountain mine. In all, Meaney stated that $10 million accounts for lower than half of 1 share level of Iron Mountain’s complete bodily quantity.

‘Working in a mine shaft’

The Pennsylvania mine, which was the deal with Musk’s statements in regards to the firm, is the place the federal authorities homes and processes retirement paperwork greater than 200 ft underground. Situated lower than an hour outdoors of Pittsburgh, the mine is billed by the corporate as providing “unbeatable” ranges of safety and safety from disasters.

The inside of the Corbis Movie Preservation Facility, situated in an Iron Mountain underground storage facility in Pennsylvania. The ten,000-square-foot Corbis facility homes over 13 million photographic negatives, engravings and prints. 

James Leynse | Corbis Historic | Getty Photographs

DOGE — the acronym for the Division of Authorities Effectivity — has been central to conversations and criticisms round President Trump’s return to the White Home as Musk’s group scours federal businesses for fats to chop. Musk’s feedback in regards to the authorities’s contracts with Iron Mountain carry consideration to a unusual setup for doc storage utilized by the federal authorities, which has been beneath Republican scrutiny for a perceived lack of effectivity.

Moreover, these feedback — and the corporate’s subsequent rationalization of its work — can supply a roadmap for what companies that work with federal businesses can count on amid the Trump administration’s deal with slashing spending.

Musk’s vital evaluation of Iron Mountain’s work with the federal authorities appeared to harm the inventory as issues mounted that the contracts could possibly be on the chopping block. Shares have dropped greater than 10% to this point this week, pulling the inventory down greater than 9% on the yr. (A big chunk of these declines got here in Thursday’s session as buyers reacted to the corporate’s slight miss on income expectations from analysts.)

Inventory Chart IconInventory chart icon

Iron Mountain, 5-day chart

DOGE posted pictures of the mine on X, the social media platform owned by Musk. Textual content accompanying the pictures famous that greater than 700 staff work within the mine, and Musk stated that at most 10,000 retirement functions might be processed every month by this technique.

“As an alternative of working in a mine shaft and carrying manila envelopes to packing containers in a mine shaft, you may do virtually anything, and you’d add to the products and providers of the US in a extra helpful manner,” Musk stated.

FILE PHOTO: Elon Musk speaks as his son X ? A-12 and U.S. President Donald Trump pay attention within the Oval Workplace of the White Home in Washington, D.C., U.S., February 11, 2025. 

Kevin Lamarque | Reuters

In describing Iron Mountain’s work with authorities entities, Meaney advised analysts the corporate companions with greater than 200 federal authorities businesses as both a direct supplier or subcontractor of providers. Moreover, he additionally pointed to an settlement with a state authorities for a tough drive destruction program that can be utilized inside its businesses.

‘A giant overreaction’

Wall Road, for its half, sees the inventory’s decline following Musk’s feedback and the DOGE put up as unreasonable.

“We view it as a giant overreaction,” Wells Fargo analyst Eric Luebchow wrote to shoppers on Wednesday.

Luebchow stated the corporate’s income isn’t pushed by any single buyer, which means that it doubtless would not take successful even when the federal authorities ended its cope with the mine. If the federal government does pull out, Luebchow stated it could doubtless need to pay Iron Mountain termination charges that may quantity to round one or two years of annual lease.

The analyst additionally backed up Meaney’s declare {that a} deal with effectivity may very well be a boon for different elements of Iron Mountain’s enterprise.

Barclays’ Brendan Lynch agreed, including that the federal government has a authorized requirement to maintain information that Iron Mountain shops someplace.

“We see this as a non-issue,” Lynch advised shoppers on Wednesday, earlier than recommending they “purchase the weak spot.”



Source link

Tags: boostCompanyDOGEElonGivegovernmentIronMountainMuskRecordsRippedstoring
ShareTweetShareShare
Previous Post

Protection shares drop after Trump says Pentagon spending could possibly be halved

Next Post

Mom Love and Pet Love, With All Their Twists and Turns

Related Posts

Taylor Swift sporting ‘cushion reduce’ engagement ring offers Signet Jewelers inventory a short pop

Taylor Swift sporting ‘cushion reduce’ engagement ring offers Signet Jewelers inventory a short pop

by Index Investing News
August 26, 2025
0

US singer-songwriter Taylor Swift kisses Kansas Metropolis Chiefs' tight finish #87 Travis Kelce after the Chiefs received Tremendous Bowl LVIII...

IPO Information: WaterBridge Infrastructure recordsdata go public. Right here is what to anticipate

IPO Information: WaterBridge Infrastructure recordsdata go public. Right here is what to anticipate

by Index Investing News
August 27, 2025
0

The IPO market rebounded within the first half of 2025 with filings and proceeds climbing sharply year-over-year, signaling renewed investor...

China’s Robotic Olympics Obtained Laughs however the Stakes Are Critical

China’s Robotic Olympics Obtained Laughs however the Stakes Are Critical

by Index Investing News
August 27, 2025
0

Like most People, I get pumped for the Olympics. Subsequent 12 months, I’m hoping my younger daughters could have sufficient...

Can Costco (COST) stay resilient towards tariff headwinds this yr?

Can Costco (COST) stay resilient towards tariff headwinds this yr?

by Index Investing News
May 31, 2025
0

Costco Wholesale Company (NASDAQ: COST) this week reported larger gross sales and revenue for the third quarter, regardless of tariff-related...

This is the reason Jamie Dimon is at all times so gloomy on the financial system

This is the reason Jamie Dimon is at all times so gloomy on the financial system

by Index Investing News
May 31, 2025
0

Jamie Dimon, CEO of JPMorgan Chase, testifies through the Senate Banking, Housing and City Affairs Committee listening to titled Annual...

Next Post
Mom Love and Pet Love, With All Their Twists and Turns

Mom Love and Pet Love, With All Their Twists and Turns

GameStop contemplating investing in bitcoin, different crypto, sources say

GameStop contemplating investing in bitcoin, different crypto, sources say

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

What Did the Son Of Jeff Ulbrich Do? – Hollywood Life

What Did the Son Of Jeff Ulbrich Do? – Hollywood Life

April 28, 2025
Studies: Man conned his means into British Royal Guard barracks

Studies: Man conned his means into British Royal Guard barracks

May 4, 2022
ASIC Suspends FTX’s AFS License

ASIC Suspends FTX’s AFS License

November 16, 2022
Financial institution of England holds rates of interest at 4.75%

Financial institution of England holds rates of interest at 4.75%

December 19, 2024
Daredevil Brit influencer dies after plunging from one in all Spain’s highest bridges ‘for social media stunt’

Daredevil Brit influencer dies after plunging from one in all Spain’s highest bridges ‘for social media stunt’

October 13, 2024
12 Doors and a M Portfolio as a Real Estate Power Couple

12 Doors and a $4M Portfolio as a Real Estate Power Couple

July 5, 2023
Which Shopper Staples Inventory is the Greatest Choose?

Which Shopper Staples Inventory is the Greatest Choose?

August 4, 2024
Dow Jones Futures Rise, Big News For Merck; Tesla, Apple Lead 7 Stocks Near Buy Points

Dow Jones Futures Rise, Big News For Merck; Tesla, Apple Lead 7 Stocks Near Buy Points

April 17, 2023
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In