Latest news with #RickSmith
Business Insider
08-08-2025
- Business
- Business Insider
Lightning Strikes Twice for AXON as Analysts Eye $1,000 Price Target
Excitement is peaking at Axon Enterprise (AXON), the company behind TASERs, security body cameras, and cutting-edge cloud software for public safety. Earlier this week, the company published stellar earnings results, helping the stock to repeat history, almost to the day. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. On August 6th, 2024, the company reported better-than-expected earnings of $1.15 per share and immediately spiked higher on the news, before consolidating its gains in the weeks ahead. Judging by the stock's reaction to this year's figures so far this week, it would seem AXON's upward trend remains intact. AXON's latest Q2 report hit like a bombshell, sending the stock up 17% since Monday and pushing its gain to ~150% over the past year. With accelerating top-line growth and surging profitability, Axon is leveraging AI and exceptional customer retention to strengthen its grip on a recession-resistant industry. While the valuation is undeniably rich, this is a unique business—one that rarely, if ever, trades at a discount. That's why AXON remains one of my largest holdings. Revenue Growth Keeps Punching Above 30% Axon's Q2 revenue clocked in at $669 million, a 33% jump from last year. Not only did this mark the sixth consecutive quarter of above 30% revenue growth, but in fact, it accelerated from Q1's already impressive 31% clip. The software and services segment was the star of the show, up 39% to $292 million, fueled by premium digital evidence management and new AI tools like auto-transcription. Management emphasized strong demand for TASER 10 and Axon Body 4 as well, with platform solutions like counter-drone tech growing 86%. AI's integration is streamlining police workflows, saving 6-12 hours per officer weekly, and with annual recurring revenue (ARR) hitting $1.2 billion, up 39%, this growth train's got serious momentum. International expansion, particularly in Europe, and enterprise customer wins are also juicing numbers. In the post-earnings call, CEO Rick Smith discussed their 'product-led flywheel,' where new products drive subscriptions, which in turn drive more innovation. AI's role here is enormous, as tools like Draft One and live translation are boosting adoption, and with $10 billion in future contracted bookings, Axon's growth looks locked in for years. Then you have new tools like Evidence Translation and Smart Capture that are set to roll out, and make Axon's ecosystem even stickier. Evidently, with a net revenue retention rate of 124%, customers aren't just renewing their subscriptions, but they're spending more year after year. Margin Expansion Fuels Profit Powerhouse Profitability-wise, Axon's adjusted EBITDA hit $172 million in Q2, up 37%, with a margin of 25.7%, beating expectations. Management credited higher revenue and operating leverage, but the real magic seems to be in the product mix. Software and services, with a 75.6% gross margin, grew way faster than hardware, offsetting lower device margins from newer products like counter-drone systems. AXON's management commented in the earnings call that AI-driven efficiencies, like video auditing and real-time operations tools, are raising margins by cutting manual work. This focus on high-margin software helped adjusted net income reach $174 million, driving EPS to $2.12, well above analyst estimates. Earlier, Axon had flagged tariffs as a potential margin hit, but it seems they are easily absorbing those costs while still targeting a 25% adjusted EBITDA margin for the year. AXON Stock Valuation Remains Pricey Yet Justified Axon's current valuation is eye-watering. Trading at a P/S of 25 and a P/E of 131 based on 2025's projected $2.72 billion revenue and $6.60 EPS, this is easily one of the most expensive stocks in the market. However, the truth is that Axon has been trading at these lofty multiples for years, and time after time it has delivered. With revenue growth showing no signs of slowing and AI efficiencies kicking in, I'm not betting on multiple contractions anytime soon. Then you have to think of Axon's monopoly-like grip on public safety tech (TASERs, body cams, and cloud software), on top of operating in a recession-proof space. Police budgets don't decline in downturns, and Axon's ecosystem is sticky, with customers locked into long-term contracts. At the same time, AI is set to supercharge profitability, potentially shrinking that P/E as EPS grows faster than the stock price. I would argue that a run to $1,000 per share, which would imply a P/S near 30, might raise eyebrows, but for a business this dominant, it's not crazy. What is the Price Target for AXON in 2025? There are 16 analysts offering price targets on AXON stock via TipRanks, with an overwhelming bullish consensus. Currently, the stock carries a Strong Buy consensus rating based on 15 Buy and one Hold ratings over the past three months. No analyst rates the stock a sell. AXON's average stock price target of $857.07 implies less than 1% downside over the next twelve months. However, Wall Street has yet to update its post-earnings estimates, which will likely move higher after such a strong beat. Time to Back AXON as a Generational Compounder At the end of the day, Axon is doing what top-tier companies do: beating growth expectations, widening margins, and securing long-term customers with essential technology. Sure, the valuation may look toppy and extreme through a traditional lens—but with AI amplifying its model and public safety spending proving recession-proof, AXON's fundamentals remain rock-solid. I'm not trimming a single share because I believe it's wiser to add to generational compounders—history shows the market usually ends up playing catch-up to their long-term potential.
Yahoo
07-08-2025
- Business
- Yahoo
Axon Jumps as Profit Beats in 'Very Strong' Quarter
Axon shares gain as much as 18%, the most since Feb. 26 and enough to reach a record intraday high, after the maker of Tasers and other public safety equipment reported second-quarter earnings per share that topped expectations. Analysts also noted strong bookings for the company's AI plan. Axon's CEO Rick Smith says he expects the company's AI offerings to help boost police department efficiency , and that private, enterprise security, is the biggest source of growth for the company. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
07-08-2025
- Business
- Globe and Mail
Axon Enterprise (AXON) Vs Palantir Technologies (PLTR): Which is the Better Investment?
Strong Q2 results have led to a further uproar in Axon Enterprise AXON and Palantir Technologies PLTR shares this week, remaining two of the hottest momentum stocks. Axon's stock has now spiked over +40% year to date, with Palantir shares surging more than +130%. More astonishing, AXON is up over +640% in the last three years with PLTR skyrocketing more than 1,700%. Considering their millionaire-maker-like gains, investors are surely wondering which of these hot stocks is the better investment at the moment. Axon Thrives on Increased Public Safety Spending Thanks to increased global defense and public safety spending, Axon easily surpassed its Q2 expectations while posting stellar top and bottom line growth. The innovative manufacturer of weapons for the U.S. and international governments posted Q2 sales of $668.54 million, which soared nearly 33% year over year and comfortably topped estimates of $642.98 billion by 4%. Furthermore, this marked the 14 th consecutive quarter of revenue growth above 25%, with CEO Rick Smith stating Axon is seeing broad demand across the company's portfolio, including for its AI services, drones, cameras, and virtual reality solutions. More impressive, Axon's Q2 earnings came in at $2.12 per share, crushing expectations of $1.54 by 37% and soaring 76% from $1.20 in the prior period. Axon has now exceeded the Zacks EPS Consensus for a remarkable 33 consecutive quarters, with a very impressive average earnings surprise of 25.87% in its last four quarterly reports. Palantir's First Billion-Dollar Quarter Also thriving from increased defense spending, including the securement of a $10 billion contract with the U.S. Army, Palantir achieved its first-ever billion-dollar quarter, topping estimates of $938.33 million. This was a 48% spike from Q2 sales of $678.13 million a year ago, as the software provider saw strong demand for its artificial intelligence platform (AIP) outside of the intelligence communities. Pinpointing increased commercial demand for AIP, Palantir CEO Alex Karp stated that companies are using Palantir's tools not just to optimize operations, but to reshape entire business models. Palantir is also taking advantage of its expansive sales growth, with Q2 EPS of $0.16 rising from $0.09 a share in the comparative quarter and edging expectations of $0.14. Notably, Palantir has now reached of exceeded the Zacks EPS Consensus for 11 consecutive quarters with an average earnings surprise of 13.17% over the last four quarters. Axon & Palantir Raise Their Full-Year Guidance Adding fuel to investor sentiment is that Axon and Palantir have raised their full-year revenue guidance. Optimistically, Axon now forecasts fiscal 2025 revenue at $2.65-$2.73 billion, up from $2.6-$2.7 billion. It's also noteworthy that Axon expects full-year adjusted EBITDA of $665-$685 million, raised from $650-$675 million. Pivoting to Palantir, the company raised its FY25 revenue forecast to $4.142 billion-$4.15 billion, up from previous guidance of $3.89 billion-$3.9 billion. The bump is specifically attributed to full-year commercial revenue guidance increasing to over $1 billion, reflecting at least 85% growth. Additionally, Palantir raised its adjusted income from operations guidance to between $1.912 billion-1.92 billion and increased its adjusted free cash flow guidance to $1.8 billion-$2 billion. Monitoring Axon & Palantir's Valuation While Axon is well ahead in terms of moving further past the probability line than Palantir, the price-to-sales ratio may still be a better indicator of judging the value these hot stocks offer to investors at their current levels, rather than price-to-earnings. That said, Axon is also growing into its lofty valuation more swiftly regarding the P/S ratio after a rebranding to reflect its broader mission in public safety technology. To that point, Axon trades at 25X forward sales, which is far more reasonable than Palantir's 104X. Conclusion & Final Thoughts Although Palantir's ability to benefit from the AI boom makes it the better momentum stock at the moment, Axon appears to be the overall better investment when considering its more justifiable valuation. Axon's profitability also makes it a more sound investment, and earnings estimate revisions (EPS) have remained higher, correlating with AXON sporting a Zacks Rank #1 (Strong Buy). On the other hand, Palantir stock lands a Zacks Rank #3 (Hold), and investors may certainly be looking for better entry points given PLTR doesn't offer much fundamental value after such a monstrous year-to-date rally. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Axon Enterprise, Inc (AXON): Free Stock Analysis Report
Yahoo
07-08-2025
- Business
- Yahoo
Axon Enterprise (AXON) Vs Palantir Technologies (PLTR): Which is the Better Investment?
Strong Q2 results have led to a further uproar in Axon Enterprise AXON and Palantir Technologies PLTR shares this week, remaining two of the hottest momentum stocks. Axon's stock has now spiked over +40% year to date, with Palantir shares surging more than +130%. More astonishing, AXON is up over +640% in the last three years with PLTR skyrocketing more than 1,700%. Considering their millionaire-maker-like gains, investors are surely wondering which of these hot stocks is the better investment at the moment. Image Source: Zacks Investment Research Axon Thrives on Increased Public Safety Spending Thanks to increased global defense and public safety spending, Axon easily surpassed its Q2 expectations while posting stellar top and bottom line growth. The innovative manufacturer of weapons for the U.S. and international governments posted Q2 sales of $668.54 million, which soared nearly 33% year over year and comfortably topped estimates of $642.98 billion by 4%. Furthermore, this marked the 14th consecutive quarter of revenue growth above 25%, with CEO Rick Smith stating Axon is seeing broad demand across the company's portfolio, including for its AI services, drones, cameras, and virtual reality solutions. More impressive, Axon's Q2 earnings came in at $2.12 per share, crushing expectations of $1.54 by 37% and soaring 76% from $1.20 in the prior period. Axon has now exceeded the Zacks EPS Consensus for a remarkable 33 consecutive quarters, with a very impressive average earnings surprise of 25.87% in its last four quarterly reports. Image Source: Zacks Investment Research Palantir's First Billion-Dollar Quarter Also thriving from increased defense spending, including the securement of a $10 billion contract with the U.S. Army, Palantir achieved its first-ever billion-dollar quarter, topping estimates of $938.33 million. This was a 48% spike from Q2 sales of $678.13 million a year ago, as the software provider saw strong demand for its artificial intelligence platform (AIP) outside of the intelligence communities. Pinpointing increased commercial demand for AIP, Palantir CEO Alex Karp stated that companies are using Palantir's tools not just to optimize operations, but to reshape entire business models. Palantir is also taking advantage of its expansive sales growth, with Q2 EPS of $0.16 rising from $0.09 a share in the comparative quarter and edging expectations of $0.14. Notably, Palantir has now reached of exceeded the Zacks EPS Consensus for 11 consecutive quarters with an average earnings surprise of 13.17% over the last four quarters. Image Source: Zacks Investment Research Axon & Palantir Raise Their Full-Year Guidance Adding fuel to investor sentiment is that Axon and Palantir have raised their full-year revenue guidance. Optimistically, Axon now forecasts fiscal 2025 revenue at $2.65-$2.73 billion, up from $2.6-$2.7 billion. It's also noteworthy that Axon expects full-year adjusted EBITDA of $665-$685 million, raised from $650-$675 million. Pivoting to Palantir, the company raised its FY25 revenue forecast to $4.142 billion-$4.15 billion, up from previous guidance of $3.89 billion-$3.9 billion. The bump is specifically attributed to full-year commercial revenue guidance increasing to over $1 billion, reflecting at least 85% growth. Additionally, Palantir raised its adjusted income from operations guidance to between $1.912 billion-1.92 billion and increased its adjusted free cash flow guidance to $1.8 billion-$2 billion. Monitoring Axon & Palantir's Valuation While Axon is well ahead in terms of moving further past the probability line than Palantir, the price-to-sales ratio may still be a better indicator of judging the value these hot stocks offer to investors at their current levels, rather than price-to-earnings. That said, Axon is also growing into its lofty valuation more swiftly regarding the P/S ratio after a rebranding to reflect its broader mission in public safety technology. To that point, Axon trades at 25X forward sales, which is far more reasonable than Palantir's 104X. Image Source: Zacks Investment Research Conclusion & Final Thoughts Although Palantir's ability to benefit from the AI boom makes it the better momentum stock at the moment, Axon appears to be the overall better investment when considering its more justifiable valuation. Axon's profitability also makes it a more sound investment, and earnings estimate revisions (EPS) have remained higher, correlating with AXON sporting a Zacks Rank #1 (Strong Buy). On the other hand, Palantir stock lands a Zacks Rank #3 (Hold), and investors may certainly be looking for better entry points given PLTR doesn't offer much fundamental value after such a monstrous year-to-date rally. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-08-2025
- Business
- Yahoo
Axon Stock Skyrocketed on Tuesday. Here's Why Shares of the TASER Maker Popped.
Axon Enterprise (AXON) shares soared Tuesday after the public safety technology company reported better-than-expected results and issued a rosy outlook. The stock jumped 16% to an all-time high, pacing S&P 500 advancers today. Axon shares have risen 46% since the start of the year, far outpacing the benchmark index's 7% gain over the period. The Scottsdale, Arizona-based company reported adjusted earnings per share of $2.12 on revenue that increased 33% year-over-year—its 14th consecutive quarter with a gain above 25%—to $668.5 million. Analysts polled by Visible Alpha had expected $1.44 and $641.0 million, respectively. Software & Services revenue surged 39% to $292 million, paced "by growing adoption of premium digital evidence management solutions, real-time operations, virtual reality training and productivity tools," Axon said. Connected Devices revenue rose 29% to $376 million, "driven by demand for TASER 10." Axon lifted its full-year revenue outlook to between $2.65 billion and $2.73 billion from the prior range of $2.60 billion to $2.70 billion. It also raised its 2025 adjusted EBITDA forecast to between $665 million and $685 million from $650 million to $675 million. "Artificial intelligence, drones and robotics, real-time operations, cameras, and our newest TASER devices and virtual reality, each of those are resonating across our customer base," Axon founder and CEO Rick Smith said on the earnings call late Monday, according to a transcript provided by AlphaSense. "There's no one breakout product driving conversations. It's everything." Read the original article on Investopedia
