Axon: Misunderstood Company With Big Upside

Jul. 20, 2020 3:41 AM ETAxon Enterprise, Inc. (AXON)MSI19 Comments
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Zen Analyst


  • Axon Enterprise is a very unique company with great promise, but still under the radar.
  • Axon transitioned from an equipment company to an enterprise software company, increasing its multiples.
  • Investor concerns about budgetary pressures are overblown.
  • AAXN could return 75%.

Axon Enterprise (AAXN) is a very unique company with great promise, but still somewhat under the radar. After the first night of the George Floyd riots, I woke up the next morning and watched a trending Reddit video of a police station burning. The situation looked bad, much worse than the 2014 Ferguson unrest, and with unemployment across the nation high, I thought social unrest could get much worse.

My gut instinct was that AAXN will benefit as it did in 2014. To my surprise, the stock was up only 1% that morning, suggesting that few people understand the opportunity in front of AAXN. In this article, I will share my thoughts on why AAXN is an attractive stock.

Introduction to AAXN

Axon Enterprises started as TASER International in 1993 in the consumer market and ended up pivoting to law enforcement. Over the better part of three decades now, the company has been building its channel with law enforcement first with the TASER stun gun and then, starting around 2008, with Axon body cameras. It wasn't until 2014 after the Ferguson unrest that body cameras really started to be embraced by both police departments and the stock market.

Axon enjoys a market-leading position in body cameras due to its back-end software and evidence management, which the company calls Axon was built on a cloud-first architecture with attractive consumer-like UI/UX which made its products effective and pleasant to use. Building on this solid foundation, the company is now expanding into records, software, and dispatch.

Over recent years, the company is trying to pivot from primarily TASER and body camera to more of an enterprise software company that's bringing these cloud-based solutions to more end markets outside of law enforcement such as federal corrections and enterprise.

Today, AAXN has four strategic growth

This article was written by

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Disclosure: I am/we are long AAXN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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