So, Axon, huh? The company that wants to arm every cop in America with a body cam and a Taser just took investors on a rollercoaster. Buckle up, because this ain't your grandma's stock analysis.
Let's get this straight: Axon missed earnings. Badly. Like, 23% below what the so-called "analysts" were predicting. $1.17 per share versus $1.52? Ouch. And don't even get me started on the year-over-year decrease. Down almost 20% from last year? Someone's sleeping on the job. Or maybe they're just spending too much time polishing their "we're making the world a safer place" PR spin.
But wait! Revenue beat expectations. $710.6 million, a cool 30% jump from last year. So, they're selling more stuff, just not making as much profit on it? What's that about? Are they giving away Tasers with every body cam purchase now? I mean, come on.
And then there's the guidance. They're lifting their full-year 2025 revenue outlook. Color me skeptical. They expect us to believe this nonsense, and honestly... Goldman Sachs is still maintaining a "Buy" rating, but they lowered the price target. Piper Sandler too. Sounds like someone's trying to have their cake and eat it too. "Yeah, it's still a good investment, just not as good as we thought." Give me a break.
Okay, so they missed earnings, but they're buying Carbyne for $625 million. What the hell is Carbyne? Apparently, they're some kind of "global emergency communications and response platform." So, basically, 911 on steroids? And Axon thinks this is worth over half a billion dollars?
Maybe I'm missing something here, but does Axon really need to be in the emergency communications business? Aren't they supposed to be selling Tasers and body cams? This feels like some kind of weird, unfocused expansion. Like when your grandma starts investing in crypto because she heard it on Fox News.
This deal isn't expected to close until 2026. That's like, a million years from now in tech time. Who knows what the world will look like then? Maybe we'll all be living in the metaverse, and cops will be chasing virtual criminals with virtual Tasers. Or maybe not, but still...
The stock price took a nosedive after all this news. Down over 9%? Ouch. It recovered a bit from the session low of $560, but still. If I were an Axon investor, I'd be sweating bullets right about now. Axon Stock Fights Back After Q3 Earnings Sell-Off - Axon Enterprise (NASDAQ:AXON)
So, Goldman Sachs and Piper Sandler are still sticking with their "Buy" and "Overweight" ratings, respectively. But they both lowered their price targets. Which is analyst-speak for "we were wrong, but we don't want to admit it."
I mean, come on. These are the same people who were probably hyping up Axon stock just a few months ago. Now they're trying to backpedal without losing face. It's like watching a politician try to explain why they voted for a bill they now regret.
Analysts, am I right?
This whole thing smells fishy. Axon's trying to distract everyone from their earnings miss with a shiny new acquisition. But let's be real: buying a random emergency communications company isn't going to solve their underlying problems. They need to figure out how to make more money on the stuff they're already selling. Otherwise, this stock ain't worth the paper it's printed on.
