Guidance for 70% margins in software and sensors is baked into Axon's share price; risk is to the downside if guidance is even slightly optimistic.
Axon's competitive advantage is its sales channels; its products are not particularly innovative; Axon has grown by leveraging sales channels and products into cloud solutions.
Axon has structural advantages that should funnel the market down to fewer competitors; Axon helped itself in that process by acquiring VIEVU.
Despite these monopolistic properties, Axon's small TAM puts a ceiling on its runway for growth.
Axon is a quality business, but the current valuation offers little margin of safety considering the limited TAM.
Axon Enterprise (AAXN), formerly known as Taser International, has captured (no-pun intended) the lion's share of the move towards implementing body cams in law enforcement. This move has reinvigorated the company