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]

Group 1: Company Performance - Vistra (VST) stock increased by 265%, with revenue and net income up 13% and 38% respectively in the first three quarters of the year, benefiting from the growth of power-hungry data centers [1] - Axon Enterprise (AXON) rose by 141% year to date, achieving its 11th consecutive quarter of over 25% growth, with Q3 revenue up 36% year over year, driven by demand for Taser 10 and related products [2] - Palantir Technologies (PLTR) stock surged 370% year to date, following a nearly tripled stock price in 2023, attributed to accelerating revenue growth from its AI software [4] - Nvidia (NVDA) shares increased by 182%, reporting a 94% year-over-year revenue increase in the most recent quarter, driven by high demand for advanced AI chips [5] - GE Vernova (GEV) shares rose by 146% post-spin-off from General Electric, with potential benefits from a "super cycle" in power grid infrastructure due to increasing power needs and energy security [6] Group 2: Market Trends - The S&P 500 index is up 25% year to date, with several top gainers benefiting from the growth in artificial intelligence [3] - The top gainers for 2024 were underappreciated stocks, which contributed to their significant price increases, indicating that stocks trading at reasonable valuations may present future investment opportunities [7]

Core Insights - Axon Enterprise is leveraging technology such as AI, virtual reality, and drones to enhance law enforcement efficiency and training, positioning itself as a leader in public safety technology [11][27][28] Group 1: AI and Efficiency - The AI Era plan aims to reduce police report writing time from 50% to 10-20%, allowing officers to spend more time in the community [1] - The plan includes all future AI features for a five-year contract, providing cost control for governmental agencies [8] - Positive feedback from prosecutors indicates that AI-generated reports are being accepted in court, improving efficiency and quality [34] Group 2: Virtual Reality in Training - Virtual reality training has shown a 40% increase in retention compared to traditional methods, allowing officers to experience realistic scenarios [4][30] - Axon is expanding its VR training offerings to include community engagement training, helping civilians understand police perspectives [7][32] Group 3: Drone Technology - Axon's acquisition of Dedrone has significantly expanded its total addressable market, with drones being positioned as first responders to enhance situational awareness [20][21] - The DFR (Drone as a First Responder) initiative allows drones to provide real-time information to officers, potentially reducing risks during dangerous situations [37][38] Group 4: Market Position and Competition - Axon is compared to Apple in terms of its integrated hardware and software ecosystem, with body cameras and evidence management systems being core products [5][13] - The main competition is not just other companies but also the status quo in government procurement processes, which can slow down technology adoption [29] Group 5: International Expansion - Currently, international operations account for about 20% of total revenue, but there are plans for this to grow significantly, potentially reaching 80% in the future [18][19] - The company anticipates a growth rate of 20-30% in international markets as it builds its foundation and overcomes data sovereignty issues [35][36]

Nasdaq-100 Index Reconstitution - The Nasdaq-100 Index® will undergo its annual reconstitution, effective prior to market open on Monday, December 23, 2024 [1] - Three companies will be added to the Index: Palantir Technologies Inc (NASDAQ:PLTR), MicroStrategy Incorporated (NASDAQ:MSTR), and Axon Enterprise, Inc (NASDAQ:AXON) [1] - Three companies will be removed from the Index: Illumina, Inc (NASDAQ:ILMN), Super Micro Computer, Inc (NASDAQ:SMCI), and Moderna, Inc (NASDAQ:MRNA) [4] Nasdaq-100 Index Overview - The Nasdaq-100 Index® consists of 100 of the largest non-financial companies listed on The Nasdaq Stock Market® [2] - The Index was launched in January 1985, nearly 40 years ago, alongside the Nasdaq Financial-100™ Index [2] - The Index serves as a benchmark for financial products such as options, futures, and funds [2] - The reconstitution occurs annually in December, timed to coincide with the quadruple witch expiration Friday of the quarter [2] Invesco QQQ Trust and Related Products - The Nasdaq-100 Index® is the basis for the Invesco QQQ Trust (NASDAQ:QQQ), which aims to provide investment results corresponding to the Index's performance before expenses [3] - Options, futures, and structured products based on the Nasdaq-100 Index® and the Invesco QQQ Trust are traded on various exchanges [3] Nasdaq Global Indexes and Company Information - Nasdaq Global Indexes has been creating innovative, market-leading, and transparent indexes since 1971 [5] - The index offering spans geographies and asset classes, providing opportunities for financial product sponsors and asset managers [5] - Nasdaq offers exchange listing, custom index, and design solutions to financial organizations worldwide [5] - For more information on the companies added to the Nasdaq-100 Index®, visit their respective websites: Palantir Technologies Inc, MicroStrategy Incorporated, and Axon Enterprise, Inc [5] Nasdaq's Role in Global Markets - Nasdaq (NASDAQ:NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators [6] - The company aims to deliver world-leading platforms that improve liquidity, transparency, and integrity in the global economy [6] - Nasdaq provides data, analytics, software, exchange capabilities, and client-centric services to help clients optimize and execute their business vision [6]

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 ...

Shares of Axon Enterprise, Inc. (AXON) have been showing impressive gains of late, hovering at more than $630 per share in the past five trading sessions. The stock closed at $669.87 on Tuesday, just 0.8% below its 52-week high of $675.47.Year to date, the stock has surged 160.2%, outpacing the industry and the S&P 500 composite’s growth of 50.2% and 27.1%, respectively. The company has also outperformed other industry players like Allegion plc (ALLE) and Alarm.com Holdings, Inc. (ALRM) , which have returne ...

The cash distribution leader's early trials have shown increased transparency to clients and a reduction in claim errorsSCOTTSDALE, Ariz., Dec. 3, 2024 /PRNewswire/ -- Axon (Nasdaq: AXON), the global public safety technology leader, today announced that cash distribution leader Loomis US is equipping vehicle armored service technicians with Axon Body 4 cameras as part of their continued effort to improve safety and transparency. The deployment, spanning across the United States, includes more than 2,000 bod ...

With law enforcement focused on reducing crime rates and budget pressures, while recruiting and retaining staff, technology companies are having some early success selling artificial intelligence tools to police departments, especially to ease the burden of administrative work.  Axon, widely recognized for its Taser devices and body cameras, was among the first companies to introduce AI specifically for the most common police task: report writing. Its tool, Draft One, generates police narratives directly fr ...

Since Trump’s victory in the Presidential election, many large U.S. companies have seen their stocks surge. SPDR S&P 500 ETF Trust (SPY) added more than 2.4% from Nov. 5 to Nov. 20.The top 10 performing stocks on the S&P 500 index have witnessed 18% or more gains since Election Day, according to data provided by S&P Global Market Intelligence, which analyzed returns based on closing prices from Nov. 5 to Nov. 20, as quoted on CNBC.Solid stock returns were partly driven by the Trump administration’s expected ...