Axon's Business Overview - Axon Enterprise Inc has grown into an $18B enterprise value business by vertically integrating hardware and software products for law enforcement agencies, creating a "Walled Garden" ecosystem that offers a superior customer experience [1][3] - The company's vertical integration strategy is similar to Microsoft's approach in software, allowing it to dominate its industry and capture significant market share [3][5] - Axon's product portfolio includes TASER devices, body cameras, officer productivity software, back office software, and training products, all of which are now offered as a seamless, vertically integrated platform [3][5] Growth Drivers - Axon's TAM expansion is driven by entering new industry verticals such as military police and commercial security, as well as international markets like the EU, APAC, and Latin America [8][9] - The company's federal business has grown from essentially zero a few years ago to now accounting for five of its top 10 deals in Q3 2023, with a TAM estimated at $10B [9] - International revenue grew 52% in Q3 2023, with management believing the international business could eventually be five times larger than the current US business [9] Product Innovation - Axon has a culture of product innovation, launching new successful product lines that drive compounding sales and free cash flow growth [6] - The company's TASER 10 product has seen orders surpass the first six quarters of TASER 7 orders, with orders pacing at over 4 times the rate of TASER 7 [7] - Axon stays close to customers through frequent technology summits, ride-alongs, and annual user conferences to calibrate R&D decisions and drive innovation [6][7] Software Business - Axon's software business reached $619M in ARR in Q3 2023, growing at 54% YoY and accounting for 36% of total revenue [10][11] - The company's net revenue retention rate is an excellent 122%, driven by new customer signings, feature add-ons, and existing customers expanding their needs [10] - Axon's software business alone could justify the company's current $18B enterprise value, as it continues to sustain 50%+ growth while the rest of the software industry decelerates [12] Valuation - Axon is currently reinvesting aggressively to build out its international organization and expand into new verticals, which is pushing down near-term free cash flow margins [13] - The company has provided an intermediate free cash flow margin target of 17 5% to 20%, with its software business expected to generate 30-40% free cash flow margins long-term [13][14] - Using reasonable assumptions, Axon offers about 15% annualized returns, with the market pricing the stock fairly efficiently relative to its growth prospects [17][18]

Axon Enterprise (AXON) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this maker of stun guns and body cameras have returned +0.7%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Security and Safety Services industry, which Axon falls in, has lost 5.1%. The key question now is: What could be the stock's future direc ...

Fusus excels in aggregating live video, data and sensor feeds from virtually any source, enhancing situational awareness and investigative capabilities for public safety, education and commercial customers. This acquisition, which is highly complementary, provides Axon with technology not currently in its existing network, and facilitates seamless connections to critical data sources such as camera locations and video feeds from both fixed and body worn cameras during unfolding incidents. Fusus' technology ...

Election season is upon us once again. While nothing has been officially sewn up just yet, it appears that President Joe Biden and former President Donald Trump are overwhelming favorites to secure their parties’ nominations once again. Assuming this comes to pass, it will set up a rematch of the 2020 presidential election.As of this writing, betting odds have Trump at about a 44% chance to win the presidency. Biden has about 33% odds of winning. And bettors have assigned a combined 23% chance that the winn ...

This may end up being the most controversial article I write this year: picking out viable ideas regarding market predictions for a Trump presidency. Yeah, as ridiculous as it may appear to roughly half the nation, I believe a good chance exists that former President Donald J. Trump will take the White House in 2024.On a cerebral level, such a bold statement seems to lack any substance. However, when did Americans ever approach general elections cerebrally? This isn’t the 1960 debate between Senator John F. ...

24 Assets to Invest in for 2024: Part 6In Part 5, I spoke about chip stocks, Palantir (NYSE: PLTR),Costco (NASDAQ: COST),and Solana Meme Coins. Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.24 Assets to Invest in for 2024: Part 6This is a list I usually make for myself each year, although not with the clever title. I try to make at least a watchlist of assets I want to invest ...

In the latest market close, Axon Enterprise (AXON) reached $251.24, with a -1.48% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.36%.The maker of stun guns and body cameras's stock has dropped by 1.2% in the past month, falling short of the Industrial Products sector's loss of 0.83% and the S&P 500's gain of 2.4%.The upcoming earnings release of Axon Enterprise will be of gr ...

What is a Short Squeeze?A short squeeze occurs in the stock market when investors who have taken short positions in a stock (betting that its price will fall) are forced to buy shares to cover their positions as the stock's price unexpectedly rises. This upward price movement can be triggered by positive news, robust earnings reports, or other factors that drive demand for the stock. As short sellers rush to buy shares to limit their losses, the increased buying activity further drives up the stock's price. ...

Axon Enterprise (AXON) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this maker of stun guns and body cameras have returned -2.5%, compared to the Zacks S&P 500 composite's +1.2% change. During this period, the Zacks Security and Safety Services industry, which Axon falls in, has lost 1.3%. The key question now is: What could be the stock's futur ...

Stock Performance - Axon Enterprise ended the recent trading session at $250 69, showing a +0 46% increase from the previous day's closing price [1] - The stock outperformed the S&P 500's daily gain of 0 08%, while the Dow declined by 0 31% and the Nasdaq appreciated by 0 02% [1] - Over the past month, Axon Enterprise shares depreciated by 1 41%, underperforming the Industrial Products sector's gain of 4 54% and the S&P 500's gain of 3 52% [1] Financial Expectations - The company is expected to report EPS of $0 86, up 22 86% from the prior-year quarter [1] - Quarterly revenue is anticipated to be $418 97 million, up 24 64% from the year-ago period [1] Analyst Estimates - Positive estimate revisions are considered a sign of optimism about the company's business outlook [2] - The Zacks Consensus EPS estimate has moved 0 4% lower over the past month [2] - Axon Enterprise currently has a Zacks Rank of 3 (Hold) [2] Valuation Metrics - Axon Enterprise is trading with a Forward P/E ratio of 60 25, which is a premium compared to the industry's average Forward P/E of 21 4 [3] - The Security and Safety Services industry, part of the Industrial Products sector, has a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries [3]