What Happened?
Shares of self defense company AXON (NASDAQ: AXON) jumped 4% in the afternoon session after investment firm TD Cowen reiterated its 'Buy' rating and $925 price target on the stock, citing confidence in the company's growth prospects.
The investment firm highlighted its confidence in the public safety technology company's growth prospects following a recent investor meeting. TD Cowen pointed to several expansion drivers, including AI initiatives, drones, and international growth. The firm's positive outlook is supported by Axon's strong fundamentals, such as its recent 32.41% revenue growth. The analyst note also mentioned that despite delivering strong second-quarter results with raised guidance in early August, the stock had recently pulled back approximately 13%, suggesting the current price could be a favorable entry point for investors.
After the initial pop the shares cooled down to $788.81, up 4.6% from previous close.
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What Is The Market Telling Us
Axon’s shares are very volatile and have had 22 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 13 days ago when the stock gained 15.4% on the news that the company reported stellar second-quarter financial results and raised its full-year forecast. The public safety technology company announced its quarterly revenue climbed 33% year-over-year to $669 million, which surpassed analyst expectations. Earnings per share came in at $2.12, a significant jump from the prior year and a positive surprise of over 37% compared to estimates. This strong performance stemmed from a 39% increase in the company's high-margin Software & Services revenue. Axon's Annual Recurring Revenue (ARR), a key metric that showed sustained demand, also leaped 39% to $1.2 billion. Following the impressive quarter, Axon boosted its revenue and adjusted earnings guidance for the full year.
Axon is up 32.2% since the beginning of the year, but at $788.81 per share, it is still trading 9.4% 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 $9,941.
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