Prison operators fall after Democrats sweep Congress
CXW•Shares of The GEO Group and CoreCivic fell 6.7% and 5%, respectively, in premarket trading after Democrats won control of both chambers of Congress. The stocks had rallied since Donald Trump won the presidency, as his immigration clampdown boosted demand for detention facilities.
1. Shares fall
The GEO Group and CoreCivic fell 6.7% and 5%, respectively, in premarket trading after Democrats won control of both the Senate and House in the midterm elections.
2. Previous gains
The companies’ shares had rallied sharply since Trump won the presidency two years ago, as his clampdown on illegal immigration boosted the need for detention facilities. CoreCivic had more than doubled in value since Trump’s election win in November 2024, while The GEO Group had jumped nearly 86%.
