Axon Crushed Earnings. Next Stop for AXON Stock? $200.

Stock Market

What Happened to the Axon Stock Price Today?

  • Shares of law enforcement technology solutions provider Axon (NASDAQ:AXON) popped after the company reported blockbuster first-quarter numbers that breezed past expectations, and included above-consensus 2021 and 2022 guides. AXON stock was up more than 5% on the news.
  • Over the past year, AXON stock is now up more than 100%. But shares are still 35% off their early 2021 highs.

Why It Happened

  • Axon’s first quarter numbers were incredible.
  • Revenues rose 33% year-over-year, on top of 27% growth in the year ago period, illustrating the durability of Axon’s growth trajectory.
  • Taser revenues rose 30%. Sensors revenue rose 36%. Axon Cloud revenue rose 34%. Big growth is happening everywhere at this company.
  • New product launches (like Axon Fleet 3, Axon Records, and Respond for Devices), new partnerships, and strong revenue retention rates (119% in the quarter) are creating a huge runway for this blistering growth to persist. 2021 revenues are guided to rise 20%, while 2022 revenues are expected to rise at least 12%.
  • Axon is growing at lightspeed without compromising margins. Gross margins expanded 310 basis points in the quarter.
  • Everything is well in the Axon kingdom.
  • AXON stock is popping as a result.

Does It Matter?

  • In the big picture, Axon is modernizing the antiquated and necessary law enforcement industry with a portfolio of advanced technologies, ranging from hardware to software solutions.
  • The company is the runaway leader in this space, without any meaningful competition, and is rapidly launching new products and expanding into new markets.
  • By the end of the decade, Axon will be the provider of all things technology for the modern police agency.
  • The company’s strong first quarter numbers underscore this big-picture bull thesis on AXON stock.

AXON Stock Price Forecast

  • Recent weakness in AXON stock is a long-term opportunity.
  • Wall Street analysts have a consensus 12-month forward price target on AXON stock of $180.
  • Once the growth sector rotation ends, AXON stock has a clear runway to that $180, boosted by strong fundamental momentum.

Axon stock is one of the best long-term growth stocks in the market today. Long-term, it has huge upside potential.

But it’s not the best growth stock to buy today.

Instead, the best growth stock to buy today is a company that reminds me of a young Amazon (NASDAQ:AMZN). Indeed, I think buying this stock today could be like buying AMZN stock back in 1997 — before it soared thousands of percent.

Which stock am I talking about?

Click here to find out.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the focus of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative next-generation mobility stocks, become a subscriber of Innovation Investor today.