Stock Price & Analysis

Based on the recent data and analysis, here is a concise assessment of AXON stock:

Technical Analysis

The stock has experienced a significant pullback, dropping 22% last week. Currently trading at $513.22, AXON is showing several bearish technical signals with a break below key support levels around $540.

Fundamental Strengths

• Strong revenue growth with 32% YoY increase in Q3 2024, marking 11th consecutive quarter of 25%+ growth
• Dominant market position in law enforcement technology
• High-margin cloud services segment (75% gross margins) providing recurring revenue
• Expanding into AI and drone technologies through strategic acquisitions

Current Challenges

• Expensive valuation at 21x sales and 86x FY2026 earnings
• Recent analyst downgrade by Craig-Hallum from Buy to Hold
• Technical breakdown below support levels suggesting further weakness possible

Near-term Outlook The company reports Q4 earnings on February 25th with:

• Revenue guidance: $560-570M (30%+ growth)
• Strong analyst consensus: 8 Buys, 2 Holds, 0 Sells
• Average price target: $670 (30% upside from current levels)

Recommendation SELL. Despite strong fundamentals, the combination of rich valuation, technical breakdown, and broad market weakness suggests waiting for better entry points. The upcoming earnings report could provide clarity but carries significant risk given current market sentiment.

Based on the provided data and recent market analysis, here's a price prediction for AXON stock in 2025:

Technical Analysis

The stock has shown significant volatility recently, with a sharp decline of 22% in the past week. Current technical indicators suggest:

• RSI (14) at 27.99 indicates oversold conditions
• MACD is bearish with -7.21 and diverging further with -17.19 histogram
• Stock is trading below all major moving averages (5,10,20-day SMAs)
• Current price ($517) is well below the 20-day Bollinger Band middle line ($643.75)

Fundamental Drivers

• Q4 2024 earnings report coming on February 25, 2025
• Analysts expect:
  • Revenue of $567.56 million (+31.34% YoY)
  • EPS of $1.51 (+34.82% YoY)
• Strong growth in Cloud & Services division with 75%+ gross margins
• International expansion opportunities and AI-driven solutions showing promise

2025 Price Prediction

Based on the analysis, here are the projected price levels for AXON in 2025:

Base Case ($670): Aligns with current analyst consensus price target, representing ~30% upside from current levels. This scenario assumes:

• Successful Q4 earnings execution
• Continued 30%+ revenue growth
• International expansion progress

The recent sharp pullback appears to be a buying opportunity ahead of earnings, with strong fundamentals and growth trajectory intact despite elevated valuation multiples.

The S1 support level for AXON Stock is $509.88 ,The R1 resistant level for AXON Stock is $690.05.

As of the end of day on 2025-02-26, the price of AXON Stock was $575.

The target price for AXON Stock according to analyst rating is 670.00, with the highest price target at 800.00 and the lowest at 550.00. Analysts have a Strong Buy rating on AXON Stock overall.

The market cap of AXON is $37.9B.

Based on the recent data and market analysis, AXON appears to be overvalued at its current price of $517, trading at a forward P/E of 100.59x which is significantly higher than its industry average of 29.43x. The stock has experienced a substantial 22% decline this week ahead of Q4 earnings. Despite strong revenue growth of over 30% and improving profitability metrics, the current valuation at 21x sales makes it the seventh most expensive stock in the S&P 500. The company's margins have shown slight deterioration with net margin declining from 12.37% to 11.14% year-over-year. While Axon maintains a dominant market position in law enforcement technology and shows promising growth in cloud services, the premium valuation presents significant downside risk if growth expectations are not met. The recent price correction suggests the market is beginning to question the sustainability of such high multiples.

Axon Enterprise, Inc. is a provider of law enforcement technology solutions. The Company is engaged in building the public safety operating system by integrating hardware devices and cloud software solutions that lead modern policing, defense and security. Its ecosystem includes TASER energy devices, body-worn cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software, real-time operations capabilities and third-party integrations through its partner network. The Company's TASER segment offers manufacture and sale of conducted electrical devices, batteries, accessories, extended warranties, and other products and services. Software and Sensors segment development, manufacture and sale of fully integrated hardware and cloud-based software solutions that enable law enforcement to capture, store, manage, share and analyze video, and other digital evidence. The Company is also engaged in offering real-time crime center (RTCC) technology.

Based on the available data and market analysis, here is the price prediction for AXON stock by 2030:

AXON stock is projected to reach $950-1000 by 2030, driven by its dominant position in law enforcement technology and expanding AI capabilities. The company's consistent 30%+ revenue growth, strong market leadership in non-lethal weapons and body cameras, plus emerging opportunities in drones and AI-powered solutions support this bullish long-term target.

The prediction is supported by Axon's proven track record of innovation and execution, with revenue growing over 700% during previous market cycles. The company's expansion into high-margin cloud services and AI solutions, which currently have 75%+ gross margins, provides additional upside potential for sustained growth through 2030.

AXON has a total of 3330 employees.