AXON Should I Buy
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Axon Enterprise Inc. (AXON) is not a strong buy at the moment for a beginner investor with a long-term focus. Despite positive revenue growth and strong hedge fund interest, the company's declining net income, bearish technical indicators, and lack of strong trading signals suggest waiting for better entry points.
The technical indicators show a bearish trend. The MACD is below zero and negatively contracting, RSI is neutral at 34.144, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key pivot levels, with support at 405.133 and resistance at 448.189.
Hedge funds are significantly increasing their positions in the stock (+1255.57% last quarter). Analysts have recently upgraded the stock to Buy with high price targets, including $742 from Northcoast and $860 from RBC Capital, citing strong revenue growth and market opportunities.
The company's financial performance in Q3 2025 showed a significant drop in net income (-103.26% YoY) and EPS (-103.49% YoY). Gross margin also declined slightly. Additionally, there are no recent congress trades or significant insider activity to support a strong buy case. The stock's bearish technical indicators and lack of trading signals further weaken its appeal.
In Q3 2025, Axon reported a 30.57% YoY increase in revenue to $710.64M. However, net income dropped to -$2.19M (-103.26% YoY), and EPS fell to -$0.03 (-103.49% YoY). Gross margin slightly declined to 60.14% (-1.04% YoY).
Analysts are optimistic about Axon's long-term potential. Recent upgrades include Northcoast's Buy rating with a $742 price target and RBC Capital's Outperform rating with an $860 price target. However, Morgan Stanley recently lowered its price target to $713 from $760, citing the need for selectivity in 2026.
