Applied Materials, or AMAT, has recently been added to the portfolio and saw an uptick today. In contrast, it seems Axon Enterprise’s stock has experienced a noticeable drop. But interestingly, there’s no sign of a downgrade or reduction in earnings per share. Meanwhile, competitor Motorola Solutions (MSI) is presenting what they refer to as “Enterprise Intelligence” at their ISC West 2026 event. Axon will also be present, likely highlighting its range of connected devices, software, and services. We’ll have to wait for insights from analysts once the event wraps up later this week.
There are fresh rumors suggesting that the White House is looking for more funding regarding the U.S.-Iran conflicts, which raises concerns about public safety budgets. However, our sources in Washington imply that President Trump is unlikely to endorse such a measure.
With a beta of 1.52, AXON stock is typically more volatile than the broader market, especially in times of uncertainty. Take a look at the chart below; you might notice the stock is attempting to recover from the dip experienced in late February.
This dip in stock prices started in the last quarter of 2025, propelled by Axon’s strong performance results and the shared 2028 target model. This model projects annual sales of $6.0 billion against the $2.78 billion achieved in 2024, along with an adjusted EBITDA margin of about 28%, up from 25.5% in 2025.
Examining these figures, Axon’s expected adjusted EBITDA growth could reach around 140% between 2025 and 2028. This optimistic outlook is supported by future contract bookings estimated to be $14.4 billion by 2025, increasing from $10.1 billion at the end of 2024. The shift in focus toward high-margin software and services, anticipated to grow to nearly 73% from 46%-47% for connected devices, seems favorable for EBITDA expansion. It’s quite possible that Axon’s accelerated introduction of AI-driven products might mean its EBITDA projections are slightly conservative.
AXON makes up about 3.8% of Pro Portfolio assets. So, even if it narrows the gap around $442, I’m not planning to purchase more shares. However, for those who hold less of this stock, it could be a good opportunity to buy in.
Related: When the Market Goes ‘Below Deck’: Portfolio Strategies Built for Storm Conditions
Other professional portfolios:
At the time of publication, TheStreet Pro portfolio was long AXON and AMAT.
