What Happened?
Shares of self defense company AXON (NASDAQ: AXON) jumped 3.2% in the afternoon session after TD Cowen reiterated its Buy rating and $925.00 price target on the company's stock, citing expectations for strong quarterly results and an accelerating AI product cycle. The firm expected Axon to deliver results exceeding its estimate of 30% revenue growth. TD Cowen highlighted that the company's AI product cycle was gaining momentum. The research firm also believed Axon deserved a premium valuation compared to its peers due to its durable end markets, high growth profile, limited competition, and a strong competitive moat.
After the initial pop the shares cooled down to $671.60, up 0.1% from previous close.
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What Is The Market Telling Us
Axon’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 23 days ago when the stock gained 2.9% on the news that it announced a deal to acquire Prepared, an AI-powered emergency communications company. The stock's rise marked a rebound from the previous day's trading session when shares fell after the deal was first revealed. The earlier drop was fueled by investor concerns over the acquisition's potential cost and its impact on Axon's expenses. The deal brings Prepared's assistive AI tools, which help public safety agencies respond more effectively by combining call audio, video, text, and GPS data. Axon stated the acquisition would expand its public safety platform by connecting every step of the emergency response process, enabling quicker response times and improved decision-making.
Axon is up 12.6% since the beginning of the year, but at $671.60 per share, it is still trading 22.9% below its 52-week high of $870.97 from August 2025. Investors who bought $1,000 worth of Axon’s shares 5 years ago would now be looking at an investment worth $6,240.
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