3 New Developments Keep Us Upbeat About These Holdings
Axon gets a win, Google makes a trim, and Amazon ups its game.
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We are between the market open and this morning’s September Service PMI reports, which makes it a good time to discuss some positive developments for the Pro Portfolio’s positions in Axon Enterprise (AXON) , Alphabet (GOOGL) , and Amazon (AMZN) .
Axon: New Taser Approved for U.K. Police Forces
This morning, it was reported that police across England and Wales are being equipped with the new Axon T10 Taser model, which has recently been approved for use. The same reports indicate that after “robust testing,” about 20 police forces have signed up for the new Taser.
In some cases, this will be an upgrade from the prior Taser model, while in others it’s a new entry. In either case, we see this growing Axon’s International business, which drove just 15% of total revenue in 2024, but also paving the way for its body camera and higher-margin services. When Axon reports quarterly results in the coming weeks, we'll see how this adds to the company’s future contracted bookings, which stood at $10.7 billion exiting the June 2025 quarter.
Because we see this win showing there is much more ground to gain for Taser and the company’s other products and services, we remain bullish on the shares and our $860 price target. To the extent International wins stack up quicker than expected, we may need to revise that target.
Google Sharpens Its Focus One Step Further
Over the last several quarters, we’ve noted a growing focus on profitability at Alphabet, which in some cases has included culling back businesses that are no longer considered core. Yesterday, we learned that for the past two years, Google has been working to decouple its Verily life sciences unit so it can either be sold or spun out. Verily develops software and services to help health practitioners advance research and improve patient care.
Could this be the start of a larger move for Alphabet to shrink its Other Bets segment? Possibly, and if that is the case, it would reduce the operating income and EPS drag resulting from the Other Bets segment. In the first half of 2025, that drag totaled $2.5 billion, roughly 4% of Alphabet’s reported operating income. Not a massive figure, but one that, if it shrinks, would allow more of the profits generated by Google Services and Cloud to fall to the bottom line.
Amazon’s New Private-Label Food Label
It’s no secret that Amazon has been angling to grow its grocery business, and as part of that strategy, it’s had several private-label initiatives. To be clear, the company has followed the same strategy to grow its footprint in apparel and other categories.
When it comes to grocery, Amazon is stepping up its game with a new private-label food brand that consolidates those past efforts under the Amazon Grocery brand:
Amazon Grocery will feature more than 1,000 grocery items, almost all priced under $5 and rated at least 4 stars by customers. The assortment includes staples such as milk, olive oil, produce, meat, seafood, snacks, and pantry essentials—available online and at Amazon Fresh store locations.
We see this as part of Amazon’s effort to gain share against Kroger (KR) and other grocery companies at a time when consumers are contending with high food prices. Per the September 2025 FAO Food Price Index out this morning, at a reading of 128.8, the food price index is 31% higher compared to its 2020 figure of 98.1.
To us, that sounds like an opportunity not only for Amazon but Costco (COST) as well, especially as we head into the holiday season, when I frequently refer to “season’s eatings.”
At the time of publication, TheStreet Pro Portfolio was long AXON, GOOGL, AMZN and COST.
