Axon Enterprises flashed an early buy point on Monday as Wall Street priced in a more probable victory for ex-President Donald Trump in November. Axon stock joined the S&P 500 rallying to a new high — but for a different reason than the rest. The Scottsdale, Ariz., company supplies drone and real-time crime center technology that might have kept the would-be assassin from firing off any shots.
Axon Security Drones
Axon Air facilitates livestreaming from public safety drones to a remote command center, enabling situational awareness and quick decision-making. Early speculation regarding the assassination attempt against former President Donald Trump Saturday suggested a communications breakdown between the Secret Service and local law enforcement.
Axon Air systems could be one answer to avoiding similar breakdowns in the future. This is a small part of Axon's business today but has big growth potential.
The Taser stun-gun and Axon body camera maker has continually expanded its target markets and took another step with its May deal for "airspace security" leader Dedrone.
"Together, we will accelerate our efforts in creating a more advanced end-to-end drone solution that enables the good drones to fly and helps ensure the bad ones don't," CEO Rick Smith said in May.
Axon credited the Dedrone deal with expanding its potential market opportunity by $14 billion, to $77 billion.
Northcoast Research analyst Keith Housum told Investor's Business Daily in a Tuesday email that drone technology and real-time crime-center opportunities "are definitely part of" Axon stock's reaction to Saturday's attempted assassination. Also on Trump's rising odds of becoming president.
There's also "just a general feeling that law enforcement will continue to be well funded for the foreseeable future with a Trump election," Housum added.
Axon Stock
Axon stock rose another 3.1% to 318 in Tuesday morning stock market action, after yesterday's 5.5% move. Monday's surge above its 50-day moving average carried Axon past a 306.35 early entry.
Axon's Q2 reporting date has yet to be announced but came on Aug. eight last year.
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