Key insights
- An investor is considering re-entering a position in Axon (AXON), citing its strong government moat and AI integration as positives, while acknowledging high valuation and low profit margins as concerns. The post seeks broader market sentiment on the stock, suggesting a potential, albeit weak, bullish signal if others share the positive outlook.
what is everyone's thoughts on Axon Enterprises? with it down nearly 60% from high i am thinking about re-entering a position in them.
my pro/cons on it.
pro:
- strong moat with governements as customer. once the platform is used i dont imagine it will be easy for police departments for example to completely transition out
- AI shouldnt replace it as it is strengthened with it's hardware/software integration.
- tons of optionality with new product offerings can roll out to maintain 25% revenue growth YoY
cons:
- 10x price/sale seems expensive still
- profit margins are consistently pretty low vs tech competitors
what do others think of Axon?
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