Axon Enterprise: AI Upside Negated By Full Valuation

Off His Game
1.49K Followers
(9min)

Summary

  • Axon Enterprises' strong Q3 earnings and potential of the new AI bundle have driven the stock to $600 per share, with growth expected to continue into 2025.
  • The Taser business and software growth, including record revenue and net income, highlight Axon's robust financial performance and future potential.
  • Despite high valuation, Axon's innovative AI tools and international opportunities support long-term growth, making the stock a hold for now.
  • Current valuation is justified by fundamentals, but potential risks suggest a hold rating due to recent strength and market conditions.
Body camera being worn by police officers in London, to keep officers safe, enabling situation awareness, improving community relations and providing evidence for trials.

JOHN GOMEZ

Axon Enterprises (NASDAQ:AXON) has been one of the top performers of 2024 due to an increasingly strong financial performance. The recent election of Donald Trump should help bolster this into 2025, as law and order mandates continue to get stronger. Axon recently

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AXON either through stock ownership, options, or other derivatives. 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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