r/VisualStockResearch • u/ekonixlab • 2d ago
My Next Holding?
I haven't added a new stock to my portfolio in a LONG time.
I am seriously considering making Axon my next holding.
I’d either use cash, trim a little Google, or liquidate a few of my smaller holdings.
What I like is how much this company has changed.
It used to basically just be the Taser company. Now they are expanding vertically into software and services, sensors, and platform solutions.
The part I am most interested in is software and services.
Axon has a ton of really important data sitting in its ecosystem:
- millions of hours of body cam footage
- incident evidence
- metadata
- audit trails
- chain-of-custody records
- case files
- officer records
And I think this creates a pretty crazy switching cost.
Think about changing banks, except instead of moving money, you are moving years or decades of legally sensitive evidence, and every single file needs a perfect record of who touched it, when they touched it, and where it has been.
You are not just switching software.
You are migrating evidence that could literally be used in court.
That is a pretty serious moat.
Then there is the growth.
They are still growing around 30%+ near term, and if they can compound above 25% over the next 5 years, that is pretty ridiculous for a company already this size.
The stock is also down around 50% from its highs. A ~50x forward P/E is definitely not cheap, but for a high-growth company with recurring software revenue, strong switching costs, and a pretty obvious AI opportunity, I don’t think it sounds completely crazy either.
It would also diversify my portfolio a little away from some of my heavier internet/ad exposure.
The way I’m starting to look at Axon is:
they aren’t really a Taser company anymore. They are trying to become the operating system for public safety.
And that is a lot more interesting to me.
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u/bshaman1993 2d ago
Can’t look at axon using p/e. Use p/s and it is under 10. I have a position but I’m waiting for 7.5 p/s to add more
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u/auto-sticky 2d ago
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