AX AXON Axon Enterprise, Inc. Loading... : Investor Sentiment and Bull/Bear Views

The author states they extended their 10-stock portfolio with AXON, disclosing a current addition to the position. No causal rationale, catalyst or risk is given beyond the portfolio addition itself.

The author argues Axon's five-segment sum-of-the-parts model shows the Flock Safety privacy backlash is largely immaterial, with direct and ecosystem damage totaling roughly $732M of terminal revenue, or about 2.4% of 2036 revenue. Evidence.com/Cloud SaaS is the main compounder, growing from $1.6B to $18.5B revenue by 2036, while ALPR/RTCC/Fusus, where the backlash lands, is under 5% of 2036 revenue. The stated valuation is Bear $288.89, Base $609.50, Bull $779.28, with a Buy rating and a 2026-2036 horizon. Main risks cited are Evidence.com net revenue retention falling below 110%, backlash broadening to bodycams or drones, Dedrone integration stumbling, or Flock resolving its privacy issues and reaccelerating.

Cramer likes Axon CEO Rick Smith and says Axon has a good product, but there is now actual competition against the company, which means gross margin pressure. At 54 times earnings, the stock cannot easily absorb that pressure, so he is taking a breather on Axon.