Shares of Axon Enterprise (AXON -1.01%) were soaring last year as the law enforcement tech company continued to show brisk growth and introduce new products. The maker of products like Tasers and police body cameras also rose following the election on hopes that Trump administration policies like mass deportation would lead to more spending on its products by law enforcement agencies.The tech stock finished the year up 130%, according to data from S&P Global Market Intelligence.As you can see from the chart ...

Despite more than doubling in 2024, the body camera specialist is ready to record another strong year.Stunning and camera ready, Axon Enterprise (AXON 2.72%) has been a portfolio game changer for long-term investors. The stock more than doubled last year and nearly quadrupled over the past three years, and it happens to be a 20-bagger since I bought in several years ago.That said, hot stocks cool off, making Axon perhaps a puzzling choice as a top stock to buy this month. The maker of namesake wearable body ...

The broader U.S. equity markets have witnessed significant volatility over the past few trading days. Solid economic data raised concerns regarding the Federal Reserve’s proposed interest rate cuts this year. The latest data from the Institute for Supply Management revealed that the non-manufacturing purchasing managers index (PMI) increased to 54.1 in December from 52.1 in November amid strong demand. This dragged the market lower yesterday after it witnessed back-to-back gains in the two preceding trading ...

Company Overview - Axon Enterprise specializes in public safety products, originally known for its Taser devices, and has expanded into sensors and software [3] - The company dominates the market for conducted energy devices and has leveraged its customer relationships to lead in body-worn cameras and digital evidence management software [3] - Axon operates in a $77 billion addressable market, with current revenue of $1.9 billion representing less than 3% of this potential [4] Financial Performance - Axon's shares have surged 1,780% over the last two decades, equating to an annual growth rate of 15.8% [1] - The company has exceeded consensus earnings estimates for the last 12 quarters, beating estimates by an average of 34% in the last six quarters [10] - Total revenue increased by 32% to $1.9 billion in the last four quarters [4] Market Position and Growth Opportunities - Axon has a strong competitive position in multiple markets, including body-worn cameras, digital evidence management, and situational awareness platforms [7] - The company has significant growth potential in U.S. federal law enforcement, commercial enterprise verticals, and international law enforcement markets [4] - Axon's management sees ample room for growth, with the company actively developing new products and expanding into new geographies [8] Product Innovation and AI Integration - Axon has incorporated AI into its products, such as digital evidence management software, which automates transcription and redaction of audio and video files [5] - The company's Draft One generative AI software, introduced in April 2024, reached a $100 million revenue pipeline faster than any other product in company history [6] - Axon's AI-driven products, including license plate recognition and automated police report writing, are enhancing law enforcement workflows [5][6] Analyst Sentiment and Valuation - Wall Street is overwhelmingly bullish on Axon, with 100% of the 15 analysts covering the stock giving it a buy rating [2] - The stock currently trades at 120 times adjusted earnings, which is considered expensive, but Wall Street may be underestimating future earnings growth [9] - If Axon continues to exceed earnings expectations, its current valuation could become more reasonable in hindsight [10]

Sea Limited - Sea Limited's stock experienced a 162% gain in 2024, making it one of the best performers on the stock market after a 77% drop in 2022 and an additional 22% decline in 2023 [1] - The company's revenue growth rate surged to 25.6% year over year through the first nine months of 2024, compared to a 4.9% growth in 2023 [3] - Sea's e-commerce segment hit a year-to-date high of 43% growth in Q3 2024, despite a 11% year-over-year reduction in sales and marketing spending [5] - The company's financial services revenue grew 38% year over year in Q3 2024, reaching $616 million for the quarter, indicating significant growth potential [14] - Bookings for Sea's video game business jumped 24% in Q3 2024, pointing to future revenue growth [14] - Sea Limited's stock trades at just 4 times sales, making it the cheapest among the three companies analyzed [15] Axon Enterprise - Axon Enterprise's stock gained 130% in 2024, driven by its expansion into new products and use cases, such as drones and body cameras for law enforcement agencies [2][6] - The company expects to report revenue growth of approximately 32% to $2.07 billion for full-year 2024, following two consecutive years of greater-than-30% growth [7] - Axon's valuation is currently trading at 24 times sales, which is twice as high as its three-year average, making it expensive for new investors [11] Spotify - Spotify's stock gained 138% in 2024, officially erasing its 75% plunge from 2021 and 2022 and setting new all-time highs [2][8] - The company's premium subscriber base grew 12% year over year to 252 million users in Q3 2024, despite price increases for its subscription plans [8] - Spotify's gross margin and operating margin hit all-time highs in Q3 2024, driven by increased subscriber numbers and higher prices [9] - The company has raised prices two years in a row and conducted layoffs, which improved profitability but may limit future growth potential [13] Industry and Market Context - Sea Limited, Axon Enterprise, and Spotify were among the large-cap stocks that experienced triple-digit gains in 2024 [2] - The e-commerce space in Asia, where Sea Limited is based, is highly competitive but also full of potential, leading to significant investment in sales and marketing [4] - Axon Enterprise's expansion into new markets and products, such as drones and body cameras, highlights the growing demand for law enforcement and security solutions [6] - Spotify's success in 2024 underscores the strong demand for digital content platforms and the potential for operating leverage as subscriber numbers grow [9]

TASER Segment Growth - The TASER segment is experiencing strong momentum due to high demand for TASER devices and virtual reality training services [1] - The next-generation TASER 10 products are gaining popularity, contributing to segment growth [1] - Increased adoption of TASER products is driving growth in cartridge revenues [1] - Rising instances of terrorism and criminal activities are expected to boost demand for Axon's products in the future [1] Acquisitions and Business Expansion - In October 2024, the company acquired Dedrone, enhancing its airspace security capabilities [2] - The acquisition of Fusus in January 2024 strengthened Axon's real-time crime center technology [2] - The purchase of Sky-Hero in July 2023 expanded the Axon Air portfolio, adding drone and ground-based vehicle technology [2] Software & Sensors Segment Performance - The addition of new users and devices to the Axon network is driving growth in the Software & Sensors segment [7] - Increased demand for cloud-connected TASER devices and software applications is boosting Axon Evidence and cloud services [7] - Professional services revenues from new product installations, such as Axon Fleet cameras, are benefiting the segment [7] Financial and Operational Challenges - The company's cost of sales increased by 31.8% year over year in 2023 and by 39.5% in the first nine months of 2024 [3] - Cost of sales as a percentage of sales rose to 68.7%, up 670 basis points year over year [3] - High costs are attributed to business integration activities, increased headcount, higher wages, and stock-based compensation expenses [3] - Axon's international presence exposes it to risks from adverse currency fluctuations, potentially impacting margins [9] Stock Performance and Industry Comparison - Axon's shares have gained 136.5% in the past year, outperforming the industry's 34.8% growth [8]

The S&P 500 index is up 25% year to date, and it's no surprise to see several of the biggest gainers in 2024 were companies benefiting from the growth in artificial intelligence (AI). Here are the top five performers through the market close on Dec. 23, 2024.Data center suppliers dominated Palantir Technologies (PLTR -0.29%) shares have had an incredible run since bottoming out with the broader market sell-off in 2022. After the stock nearly tripled in 2023, accelerating revenue growth for the company's AI ...

The stock has crushed the S&P 500 over the long term.Josh Isner is the president of Axon Enterprise and has been with the company for over 15 years. In this podcast, he joins Motley Fool analyst Jason Moser to discuss:Why Axon is like the Apple of law enforcement.How immersive technology improves police training and retention.The role of drones and humanoids in public safety.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our b ...

NEW YORK, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Nasdaq (NASDAQ:NDAQ) today announced the results of the annual reconstitution of the Nasdaq-100 Index® (NASDAQ:NDX), which will become effective prior to market open on Monday, December 23, 2024. The following three companies will be added to the Index: Palantir Technologies Inc. (NASDAQ:PLTR), MicroStrategy Incorporated (NASDAQ:MSTR), and Axon Enterprise, Inc. (NASDAQ:AXON). The Nasdaq-100 Index® is composed of 100 of the largest non-financial companies1 listed o ...

DORTMUND, GERMANY - JANUARY 15: A police officer demonstrates the handling of an Taser on January ... [+] 15, 2021 in Dortmund, Germany. Police in North Rhine-Westphalia will begin using the Axon Taser 7 electroshock devices in a two-year pilot project, after which authorities will assess whether the devices will become standard issue. Similar pilot projects are underway in other German states. (Photo by Sascha Schuermann/Getty Images)Getty ImagesWe believe that AeroVironment stock,, a drone and uncrewed ve ...