Tech giant Accenture (NYSE: ACN) saw its stock crash 7.26% in the charts shedding nearly 24 points. The fall made ACN fall to the $300 mark and could dip below the $290 mark next. The asset is attracting bearish sentiments and experiencing little to no price spurts in 2025. ACN is down close to 18% in a month and will most likely continue its downward trend in the indices. Traders are staying away from the stock as it’s yet to bottom out in price.
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So Why is Accenture Stock Falling?
Accenture is the first casualty of Elon Musk’s D.O.G.E department as the Federal government has warned of contract cuts. The department wants to limit spending by pulling out contracts with leading tech giants. The move will lead to job losses and lesser hiring at the firm which will eat up its revenue and damage earnings.
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Federal Service contracts accounted for 16% of Accenture’s revenues and the reversal will make its balance sheet see a gradual dip. It will negatively impact the company’s overall performance leading to billions in losses. The contract cuts made investors fearful of Accenture making its stock plunge 7.26% in the day’s trade.
“Federal represented approximately 8% of our global revenue and 16% of our Americas revenue in FY 2024. As you know, the new administration has a clear goal to run the federal government more efficiently. During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue,” said Chief Executive Julie Spellman Sweet to Wall Street analysts.
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It is advised to not take an entry position in Accenture stock now as the downside risk remains high. The firm is scrambling to find a solution on what to do next to keep its revenues afloat. ACN is shrouded with uncertainties that could pull its price down further in the indices. Traders are advised to take entry only when the firm has a clear solution and its price has bottomed out.