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Company Overview - Axon Enterprise (AXON) shares increased by 3% to $446.97 in the last trading session, following a significant volume of shares traded, despite a 31.3% loss over the past four weeks [1] Business Segments - The growth in Axon's stock is primarily attributed to the strong performance of its Connected Devices segment, driven by high demand for TASER devices, virtual reality training services, and counter-drone equipment [2] - The popularity of the next-generation TASER 10 products, which began shipping in 2023, is also contributing to the segment's growth [2] Financial Performance - Axon is expected to report quarterly earnings of $1.67 per share, reflecting a year-over-year decline of 19.7%, while revenues are projected to reach $753.65 million, marking a 31% increase from the same quarter last year [3] - The consensus EPS estimate for Axon has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Axon operates within the Zacks Aerospace - Defense Equipment industry, where another company, Airbus SE - Unsponsored ADR (EADSY), experienced a 1.4% decline in its last trading session and has returned -8.6% over the past month [4] - Airbus SE's consensus EPS estimate for its upcoming report is $0.88, representing a 7.3% increase from the previous year, with a Zacks Rank of 3 (Hold) [5]

Core Viewpoint - Software stocks have experienced a significant sell-off, but not all are considered good investment opportunities, with specific recommendations for buying and avoiding certain stocks [1][2]. Group 1: Axon Enterprise (Buy Recommendation) - Axon Enterprise has seen its stock decline approximately 50% from its peak six months ago and 25% from two weeks ago, making it a potential buy [4]. - The company combines hardware and software, creating a resilient ecosystem that retains customers, particularly law enforcement agencies, which are less likely to develop custom AI software [5][7]. - Axon is expected to grow rapidly, with projected revenue growth of 31% for 2025, reaching $2.74 billion, despite a high price-to-sales ratio of 14 [8]. Group 2: Atlassian (Avoid Recommendation) - Atlassian has a large customer base, including over 350,000 customers and 80% of the Fortune 500, but its stock has dropped 72% over the past year due to AI-related fears [9][10]. - The company reported a 23% revenue growth to $1.6 billion in the fiscal second quarter, but it has been GAAP unprofitable for the last 10 years, raising concerns about its long-term viability [10][14]. - Atlassian's products are seen as vulnerable to AI disruption, and the company has been heavily reliant on share-based compensation, which could dilute shareholder value [13][15].

Core Viewpoint - Axon is set to release its fourth quarter 2025 financial results on February 24, 2026, and will host a live webinar to discuss these results, highlighting its ongoing commitment to public safety technology innovation [1]. Upcoming Financial Events - The financial results will be reported after market close on February 24, 2026, followed by a live Zoom webinar at 4:30 p.m. ET, lasting 90 minutes, which will include a presentation and Q&A session [1]. - Axon will also participate in the Morgan Stanley Technology, Media & Telecom Conference on March 3, 2026, and the Bank of America Global Industrials Conference on March 19, 2026, with events available for live webcast and archived on its investor relations website [1]. Company Overview - Axon, founded in 1993, is a leader in public safety technology, focusing on innovative solutions for law enforcement and public safety [1]. - The company offers a comprehensive network of products, including TASER devices, cameras, drones, and AI-driven capabilities, aimed at enhancing safety and accountability [1]. - Axon emphasizes responsible innovation, ensuring that technology serves humanity and is developed in collaboration with users, guided by principles of transparency and accountability [1].

Group 1 - Axon Enterprise (AXON) is successfully providing utility-like SaaS infrastructure to government customers, indicating a shift in the nature of its business that investors are beginning to recognize [1] - The success of Axon may be changing the business dynamics in ways that the market is just starting to understand [1] Group 2 - Mr. Arunangshu Das is developing Tranzoro Investments to bridge the gap between US and Indian investors, focusing on liquid India-focused ETFs and ADRs for US investors while covering a wide range of US equities, ETFs, and REITs for Indian investors [1]

Core Insights - Fidelity Growth Strategies Fund's fourth-quarter 2025 investor letter indicates a focus on midcap growth stocks, emphasizing quality companies with steady above-average growth potential [1] - The Fund's Retail Class shares returned -3.44% in Q4 2025, outperforming the benchmark Russell Midcap® Growth Index, which returned -3.70% [1] - The U.S. stock market experienced a rebound driven by strong corporate fundamentals and significant spending on artificial intelligence, although mid-cap growth stocks underperformed [1] Company-Specific Insights - Axon Enterprise, Inc. (NASDAQ:AXON) was highlighted as a leading relative detractor for the Fidelity Growth Strategies Fund, with a stock price of $430.65 as of February 4, 2026 [2] - Axon delivered a -29.74% return in the past month and a -36.43% return over the past twelve months, with a market capitalization of $3.101 billion [2] - The Fund's larger-than-benchmark position in Axon (-21%) was the biggest detractor from relative performance, attributed to disappointing quarterly results where revenue exceeded forecasts but earnings fell short due to weaker margins [3]

Company Overview - Axon Enterprise, Inc. (NASDAQ:AXON) develops and sells TASER devices, body and fleet cameras, and software solutions for law enforcement to capture, store, and manage digital evidence [3]. Market Sentiment - Recent commentary from Jim Cramer indicated mixed sentiment regarding Axon stock, noting a recent increase in stock price due to a body camera story in Minnesota, but also a quick reversal of gains, suggesting the stock may be too heavy [1]. - Cramer advised investors to trim their positions in Axon, indicating that the stock is not performing well despite initial positive news [1]. Investment Perspective - While there is acknowledgment of Axon's potential as an investment, there is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Axon [4].

Core Viewpoint - Baillie Gifford continues to focus on technology and growth sectors, maintaining a global perspective despite a reduction in total assets held to $120 billion, down $15 billion from the previous quarter [1]. Holdings Overview - As of Q4 2025, Baillie Gifford holds a total of 265 companies with assets amounting to $120 billion, reflecting a decrease of $15 billion from Q3 [1]. Top Holdings - The firm remains heavily invested in global technology and consumer giants, with a notable emphasis on Latin American e-commerce platform MercadoLibre, and Nvidia leading the portfolio, indicating confidence in the long-term potential of AI infrastructure [4]. Top Buys - Significant increases in holdings include: - Axon Enterprise (AXON) with an additional investment of $860 million - Medline Inc (MDLN) with $437 million - Rocket Lab (RKLB) with $399 million - Google-A (GOOGL) with $373 million - Duolingo (DUOL) with $357 million - The firm shows strong interest in vertical technology sectors, particularly in safety technology and education [5][6]. Top Sells - The firm has reduced its positions in: - Datadog Inc (DDOG) by $1.01 billion - Cloudflare (NET) by $990 million - Shopify (SHOP) by $680 million - BioNTech SE (BNTX) by $630 million - Meta Platforms (META) by $590 million - This indicates a strategic retreat from cloud computing and vaccine-related companies, likely based on valuation and growth switching logic [7][8]. New Positions - New investments include: - Medline Inc (MDLN) with $437 million - United Therapeutics (UTHR) with $157 million - MongoDB (MDB) with $112 million - BillionToOne (BLLN) with $104 million - Silvergate Capital (SVM) with $35 million - The new positions reflect Baillie Gifford's exploration in emerging fields such as rare disease treatment and databases, showcasing a commitment to long-term tracking in technology and healthcare [9][10].

Core Viewpoint - Axon Enterprise is facing investor concerns regarding its high valuation as it prepares to release its Q4 2025 earnings on February 24, amidst a broader market apprehension about high-growth tech firms trading at premium multiples [1] Company Overview - Axon Enterprise, headquartered in Scottsdale, Arizona, specializes in technology and weapons for law enforcement, military, and civilian use, including body-worn cameras, in-car cameras, TASER devices, and cloud software for evidence management [4] - The company operates in two segments: TASER and Software and Sensors, with the majority of revenue derived from the Software and Sensors segment, focusing on hardware and cloud-based systems for digital evidence [4] Recent Developments - Axon is expanding its AI capabilities, exemplified by its agreement to acquire Carbyne for $625 million, which aims to integrate cloud-native 911 technology into its ecosystem to enhance emergency response [2] - As AI integration progresses, there are questions about whether the upcoming Q4 results will validate the company's high valuation or serve as a reality check [3] Stock Performance - In 2026, AXON stock has declined 14% year-to-date, underperforming the S&P 500's 1.3% gain, following significant drops of nearly 10% and 7% on January 28 and 29, respectively [5] - The stock fell 4% in 2025, marking its first losing year since 2015 and snapping a nine-year streak of positive annual returns, while also underperforming the S&P 500's approximately 16% advance that year [5] Valuation Metrics - Axon is trading at a trailing price-to-earnings (P/E) ratio of 395, a forward P/E of 430, and a PEG ratio of 17.3, with a forward price-to-sales (P/S) ratio of 16.3, indicating significantly higher valuations compared to industry averages in aerospace and defense [6]

Core Viewpoint - Axon Enterprise's stock has experienced a significant decline of 19.1% this week, primarily due to a broader sell-off in the software-as-a-service (SaaS) sector, rather than any specific company news [2][3]. Group 1: Stock Performance - As of Friday at 12:09 p.m. ET, Axon stock was down 19.1% for the week, with the most significant drops occurring on Wednesday and Thursday [2]. - The sell-off is unusual for a well-established company like Axon, indicating a shift in sentiment within the software industry, as major players like Microsoft, ServiceNow, and SAP also saw double-digit declines despite earnings results being in line with estimates [3]. Group 2: Company Positioning - Axon appears relatively insulated from AI disruptions due to its strong competitive advantages, including hardware like TASERs and body cameras that integrate with software for managing evidence and investigations [4]. - The company has established itself as a leader in law enforcement technology through strategic acquisitions and a robust product offering, making it difficult for competitors to challenge its position even amid AI advancements [4]. Group 3: Financial Outlook - Following the recent sell-off, Axon now trades at a price-to-sales ratio of 16, which, while not cheap, is an improvement compared to its valuation over the past year and a half [6]. - The company is expected to report fourth-quarter earnings on February 24, with analysts forecasting a revenue growth of 31.3% to $755.3 million, although adjusted earnings per share are anticipated to decrease from $2.08 to $1.60 due to increased spending on acquisitions and AI investments [7]. - The upcoming earnings report is seen as a critical moment for Axon, providing an opportunity for the stock to recover, as historically, no-news sell-offs have been viewed as favorable buying opportunities [7].