AXON - Axon Enterprise Inc.

Likes body cameras/tasers business with a moat, but stock is expensive.

Host mentions Axon was discussed in the member-only livestream. Notes the valuation is still expensive (forward P/E ~44x) even after dropping from $885 to $400s. Believes AI won't disrupt Axon and the market knows this, hence the premium valuation.

Known for police body cameras and tasers with 84% recurring revenue, but acquired Drone (counter-drone company) which grew 300% last year. $100M in counter-drone revenue last quarter, up 95%. Provides exposure to counter-drone theme without pure-play risk.

Host previously owned Axon and sold it (possibly to buy Nebius). He calls it an amazing business utilizing software, AI, and hardware with climbing subscriptions, but it's a small position he's moved on from.

Phenomenal business model with immense moat (police body cameras, tasers, cloud subscriptions), but forward P/E of 50 is too expensive and massive stock-based compensation dilutes shareholders. Speaker is out.

Nour considers Axon a fantastic business with exceptional growth (20-30% annually), strong recurring revenue (50% of total), high net revenue retention (125%), massive TAM ($150B, <15% penetrated), and AI integration opportunities. However, he identifies major concerns: unpredictable profitability, declining operating margins despite software transition, heavy stock-based compensation diluting shareholders 4-5% yearly, and a forward P/E of 46 that is too high even after a 60% drawdown. He wants to buy but only at a much cheaper valuation.

Beautiful company selling tasers and software for law enforcement. Expected to grow massively in the future. However, forward P/E of 55 and huge stock-based compensation are red flags. On Kristof's watch list — would be a happy buyer at a lower price.

Host thinks Axon is a 'great name' with a hardware moat, AI-first approach, and strong government relationships. However, he's not currently holding it due to valuation concerns (PE of ~228x).

Host calls Axon a 'phenomenal business' and notes it's up 17% on explosive earnings with 39% revenue growth. He acknowledges the stock has had a massive run but doesn't give a specific buy or sell recommendation.

Host thinks Axon is a cool name at the intersection of hardware and software. Drone technology and robotics will widen their total offering. Expanding beyond first responders into enterprise security (Walmart, Amazon warehouses). Management is strong, though highly paid.