A fave Trump trade stock soars after earnings
Shares of Taser and body cam maker Axon jumped after the defense and surveillance technology firm smoked Q4 earnings expectations after Tuesday’s close.
The surge is a needed shot in the arm for recently faltering Trump-related trades. Axon was among the companies that were considered likely to benefit from the policy priorities pursued during the second Trump administration.
Those changes were thought to include an increased emphasis on mass detentions and deportations, potentially requiring more of Axon’s products. That generated a remarkable surge in its share price after the election in November, a rise that far outstripped expectations for sales and profits. (The company trades at an insane multiple of 105x expected earnings over the next 12 months.)
Other companies that traded on similar dynamics, like Palantir and most notably Tesla, have seen their share prices plunge in recent days. Axon, which forecasted better-than-expected sales of between $2.55 billion and $2.65 billion in the current year, seems able to stop its sell-off, at least.
Those changes were thought to include an increased emphasis on mass detentions and deportations, potentially requiring more of Axon’s products. That generated a remarkable surge in its share price after the election in November, a rise that far outstripped expectations for sales and profits. (The company trades at an insane multiple of 105x expected earnings over the next 12 months.)
Other companies that traded on similar dynamics, like Palantir and most notably Tesla, have seen their share prices plunge in recent days. Axon, which forecasted better-than-expected sales of between $2.55 billion and $2.65 billion in the current year, seems able to stop its sell-off, at least.
