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1 Potential Stock-Split AI Stock Up 1,780% in 20 Years to Buy in 2025, According to Wall Street
AXONAxon(AXON) The Motley Fool·2025-01-05 08:45

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 77billionaddressablemarket,withcurrentrevenueof77 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 1.9billioninthelastfourquarters[4]MarketPositionandGrowthOpportunities−Axonhasastrongcompetitivepositioninmultiplemarkets,includingbody−worncameras,digitalevidencemanagement,andsituationalawarenessplatforms[7]−ThecompanyhassignificantgrowthpotentialinU.S.federallawenforcement,commercialenterpriseverticals,andinternationallawenforcementmarkets[4]−Axon′smanagementseesampleroomforgrowth,withthecompanyactivelydevelopingnewproductsandexpandingintonewgeographies[8]ProductInnovationandAIIntegration−AxonhasincorporatedAIintoitsproducts,suchasdigitalevidencemanagementsoftware,whichautomatestranscriptionandredactionofaudioandvideofiles[5]−Thecompany′sDraftOnegenerativeAIsoftware,introducedinApril2024,reacheda1.9 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]