Group 1 - Axon Enterprise (AXON) is successfully providing utility-like SaaS infrastructure to government customers, indicating a shift in the nature of its business that investors are beginning to recognize [1] - The success of Axon may be changing the business dynamics in ways that the market is just starting to understand [1] Group 2 - Mr. Arunangshu Das is developing Tranzoro Investments to bridge the gap between US and Indian investors, focusing on liquid India-focused ETFs and ADRs for US investors while covering a wide range of US equities, ETFs, and REITs for Indian investors [1]

Core Insights - Fidelity Growth Strategies Fund's fourth-quarter 2025 investor letter indicates a focus on midcap growth stocks, emphasizing quality companies with steady above-average growth potential [1] - The Fund's Retail Class shares returned -3.44% in Q4 2025, outperforming the benchmark Russell Midcap® Growth Index, which returned -3.70% [1] - The U.S. stock market experienced a rebound driven by strong corporate fundamentals and significant spending on artificial intelligence, although mid-cap growth stocks underperformed [1] Company-Specific Insights - Axon Enterprise, Inc. (NASDAQ:AXON) was highlighted as a leading relative detractor for the Fidelity Growth Strategies Fund, with a stock price of $430.65 as of February 4, 2026 [2] - Axon delivered a -29.74% return in the past month and a -36.43% return over the past twelve months, with a market capitalization of $3.101 billion [2] - The Fund's larger-than-benchmark position in Axon (-21%) was the biggest detractor from relative performance, attributed to disappointing quarterly results where revenue exceeded forecasts but earnings fell short due to weaker margins [3]

Company Overview - Axon Enterprise, Inc. (NASDAQ:AXON) develops and sells TASER devices, body and fleet cameras, and software solutions for law enforcement to capture, store, and manage digital evidence [3]. Market Sentiment - Recent commentary from Jim Cramer indicated mixed sentiment regarding Axon stock, noting a recent increase in stock price due to a body camera story in Minnesota, but also a quick reversal of gains, suggesting the stock may be too heavy [1]. - Cramer advised investors to trim their positions in Axon, indicating that the stock is not performing well despite initial positive news [1]. Investment Perspective - While there is acknowledgment of Axon's potential as an investment, there is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Axon [4].

Core Viewpoint - Baillie Gifford continues to focus on technology and growth sectors, maintaining a global perspective despite a reduction in total assets held to $120 billion, down $15 billion from the previous quarter [1]. Holdings Overview - As of Q4 2025, Baillie Gifford holds a total of 265 companies with assets amounting to $120 billion, reflecting a decrease of $15 billion from Q3 [1]. Top Holdings - The firm remains heavily invested in global technology and consumer giants, with a notable emphasis on Latin American e-commerce platform MercadoLibre, and Nvidia leading the portfolio, indicating confidence in the long-term potential of AI infrastructure [4]. Top Buys - Significant increases in holdings include: - Axon Enterprise (AXON) with an additional investment of $860 million - Medline Inc (MDLN) with $437 million - Rocket Lab (RKLB) with $399 million - Google-A (GOOGL) with $373 million - Duolingo (DUOL) with $357 million - The firm shows strong interest in vertical technology sectors, particularly in safety technology and education [5][6]. Top Sells - The firm has reduced its positions in: - Datadog Inc (DDOG) by $1.01 billion - Cloudflare (NET) by $990 million - Shopify (SHOP) by $680 million - BioNTech SE (BNTX) by $630 million - Meta Platforms (META) by $590 million - This indicates a strategic retreat from cloud computing and vaccine-related companies, likely based on valuation and growth switching logic [7][8]. New Positions - New investments include: - Medline Inc (MDLN) with $437 million - United Therapeutics (UTHR) with $157 million - MongoDB (MDB) with $112 million - BillionToOne (BLLN) with $104 million - Silvergate Capital (SVM) with $35 million - The new positions reflect Baillie Gifford's exploration in emerging fields such as rare disease treatment and databases, showcasing a commitment to long-term tracking in technology and healthcare [9][10].

Core Viewpoint - Axon Enterprise is facing investor concerns regarding its high valuation as it prepares to release its Q4 2025 earnings on February 24, amidst a broader market apprehension about high-growth tech firms trading at premium multiples [1] Company Overview - Axon Enterprise, headquartered in Scottsdale, Arizona, specializes in technology and weapons for law enforcement, military, and civilian use, including body-worn cameras, in-car cameras, TASER devices, and cloud software for evidence management [4] - The company operates in two segments: TASER and Software and Sensors, with the majority of revenue derived from the Software and Sensors segment, focusing on hardware and cloud-based systems for digital evidence [4] Recent Developments - Axon is expanding its AI capabilities, exemplified by its agreement to acquire Carbyne for $625 million, which aims to integrate cloud-native 911 technology into its ecosystem to enhance emergency response [2] - As AI integration progresses, there are questions about whether the upcoming Q4 results will validate the company's high valuation or serve as a reality check [3] Stock Performance - In 2026, AXON stock has declined 14% year-to-date, underperforming the S&P 500's 1.3% gain, following significant drops of nearly 10% and 7% on January 28 and 29, respectively [5] - The stock fell 4% in 2025, marking its first losing year since 2015 and snapping a nine-year streak of positive annual returns, while also underperforming the S&P 500's approximately 16% advance that year [5] Valuation Metrics - Axon is trading at a trailing price-to-earnings (P/E) ratio of 395, a forward P/E of 430, and a PEG ratio of 17.3, with a forward price-to-sales (P/S) ratio of 16.3, indicating significantly higher valuations compared to industry averages in aerospace and defense [6]

Core Viewpoint - Axon Enterprise's stock has experienced a significant decline of 19.1% this week, primarily due to a broader sell-off in the software-as-a-service (SaaS) sector, rather than any specific company news [2][3]. Group 1: Stock Performance - As of Friday at 12:09 p.m. ET, Axon stock was down 19.1% for the week, with the most significant drops occurring on Wednesday and Thursday [2]. - The sell-off is unusual for a well-established company like Axon, indicating a shift in sentiment within the software industry, as major players like Microsoft, ServiceNow, and SAP also saw double-digit declines despite earnings results being in line with estimates [3]. Group 2: Company Positioning - Axon appears relatively insulated from AI disruptions due to its strong competitive advantages, including hardware like TASERs and body cameras that integrate with software for managing evidence and investigations [4]. - The company has established itself as a leader in law enforcement technology through strategic acquisitions and a robust product offering, making it difficult for competitors to challenge its position even amid AI advancements [4]. Group 3: Financial Outlook - Following the recent sell-off, Axon now trades at a price-to-sales ratio of 16, which, while not cheap, is an improvement compared to its valuation over the past year and a half [6]. - The company is expected to report fourth-quarter earnings on February 24, with analysts forecasting a revenue growth of 31.3% to $755.3 million, although adjusted earnings per share are anticipated to decrease from $2.08 to $1.60 due to increased spending on acquisitions and AI investments [7]. - The upcoming earnings report is seen as a critical moment for Axon, providing an opportunity for the stock to recover, as historically, no-news sell-offs have been viewed as favorable buying opportunities [7].

Core Viewpoint - Axon Enterprise has demonstrated exceptional stock performance over the past decade, consistently delivering positive returns even during broader market downturns, with a significant stock price increase of 3,340% from the end of 2015 to 2024 [2][3]. Company Performance - From 2016 to 2024, Axon generated positive returns in every year, contrasting with the S&P 500, which had two losing years [2]. - In 2025, Axon experienced a 4% decline in stock price, marking its first underperformance against the S&P 500 since 2017, despite being up over 40% at one point during the year [5]. Revenue Growth - Axon has achieved robust revenue growth, with over 30% growth in the last seven quarters and in 14 of the last 15 quarters [6]. - The company raised its full-year revenue guidance for 2025 to $2.74 billion, reflecting a 31% annual growth [7]. Valuation and Market Position - The stock's growth has been constrained by a significant increase in its price-to-sales ratio, which rose from 4 a decade ago to 19 today [7]. - Despite valuation challenges, Axon is well-positioned for future growth due to strategic acquisitions and product innovations [7][8]. Strategic Acquisitions - Axon has made key acquisitions, including Prepared and Carbyne, which have expanded its total addressable market by $5 billion to $159 billion [8]. - The launch of Axon 911, utilizing AI technology for emergency response, is a significant development that enhances the company's service offerings [8]. Technological Innovations - The introduction of a generative AI product called Draft One, which automates police report writing, exemplifies Axon's commitment to leveraging technology to improve efficiency [9]. - Axon is expanding its market for body cameras, achieving its largest sale in 2024 to a package delivery company [10]. Long-term Outlook - The company is viewed as healthy and capable of returning to its previous growth trajectory, with strategic moves indicating a focus on long-term success [12][13].

Company Overview - Axon Enterprise, Inc. is a public safety company based in Scottsdale, Arizona, specializing in conducted electrical weapons and integrated hardware and cloud-based software solutions for law enforcement and public safety agencies [1] - The company has a market capitalization of $50.2 billion and is set to announce its fiscal Q4 earnings for 2025 soon [1] Earnings Expectations - Analysts predict that Axon will report a loss of $0.20 per share for the upcoming quarter, a decline of 122.5% from a profit of $0.89 per share in the same quarter last year [2] - For the current fiscal year ending in December, the expected profit is $0.18 per share, down 91.4% from $2.09 per share in fiscal 2024 [3] - Despite the current downturn, EPS is projected to rebound significantly, growing by 611.1% year-over-year to $1.28 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, Axon shares have increased by 5.6%, which is lower than the S&P 500 Index's return of 16.9% and the State Street Industrial Select Sector SPDR ETF's increase of 20.2% [4] - On January 6, shares surged by 6% following an upgrade from Northcoast Research, which raised the stock rating to "Buy" from "Neutral" and set a price target of $742, reflecting improved growth prospects [5] Analyst Ratings - Wall Street analysts maintain a highly optimistic outlook on Axon's stock, with an overall "Strong Buy" rating [6] - Among 20 analysts, 14 recommend "Strong Buy," four suggest "Moderate Buy," and two indicate "Hold" ratings [6] - The average price target for Axon is $811.22, suggesting a potential upside of 30.1% from current levels [6]

Core Viewpoint - Axon Enterprise Inc. is considered a strong long-term investment opportunity, with recent upgrades and positive revenue growth indicating a favorable outlook for the company [1][3]. Financial Performance - In Q3 2025, Axon reported total revenue of $711 million, reflecting a 31% year-over-year increase [3]. - The Software and Services segment contributed significantly to this growth, rising 41% to $305 million, while Connected Devices grew 24% to $405 million [3]. Analyst Ratings and Price Targets - Northcoast analyst Keith Housum upgraded Axon to a Buy rating from Neutral, setting a price target of $742 [1]. - Conversely, Morgan Stanley analyst Meta Marshall lowered the price target on Axon to $713 from $760 but maintained an Overweight rating [2]. Company Overview - Axon Enterprise Inc. specializes in public safety technology solutions, operating in two segments: Software & Sensors and TASER [4]. Strategic Developments - The company is expanding its ecosystem through the introduction of Axon 911 and the integration of newly acquired companies, Prepared and Carbyne, which leverage AI and cloud infrastructure to improve emergency response and voice communications [3].

Core Insights - Axon Enterprise's stock experienced a 4% decline in 2025 after more than doubling in 2024, yet the company maintains strong long-term growth prospects [1] Company Overview - Axon specializes in technology-driven public safety products, including innovative devices and a growing cloud-based platform that integrates hardware and software [2] - The company is widely recognized for its Taser product, having sold over 1 million units, with a goal to reduce police-related deaths by 50% by 2033 [2] Financial Performance - In the third quarter, Axon reported a 31% year-over-year increase in sales, although it faced a small operating loss and a net loss of $2 million due to growth-related expenses [3] - Despite the recent losses, Axon has reported positive net income in years prior to the third quarter [3] Revenue Model - Axon's business model includes long-term contracts and recurring revenue, creating a high barrier to entry for competitors [4] - Annual recurring revenue rose by 41% year-over-year in the third quarter, reaching $1.3 billion, with future contracted bookings totaling $11.4 billion [4] Valuation Metrics - Axon stock has a forward one-year P/E ratio of 61 and a price-to-free-cash-flow ratio of 329, indicating a premium valuation typical for high-growth stocks [6] - The premium valuation is supported by the company's strong performance and long-term opportunities, despite the stock's poor performance in the previous year [6] Investment Considerations - While Axon does not appear to be a bargain at its current price, it may be suitable for long-term investors who could consider a dollar-cost-averaging strategy for better entry points [7]