Good News for This Holding Thanks to Trump's U.S. Drone Orders
We continue to like the mix shift opportunities toward cloud and AI in this public safety name.
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On Friday, President Trump signed executive orders aimed at bolstering the U.S. drone industry, cracking down on unauthorized, unmanned flights, and countering threats to national security and public safety. From what we’re reading, the orders should expand opportunities for commercial and recreational drone use, and tighten restrictions to address security threats, such as foreign adversaries using drones to spy on sensitive areas, including military installations.
Previously, we have seen growing adoption of drones in public safety and first responder applications, but in commercial uses as well. This should help bolster that adoption, a positive for our shares of Axon AXON as it should also drive demand for its cloud and AI offerings.
We recently boosted our AXON price target to $825 from $750, but as we shared in that alert, catalysts that could lead us to revisit that target yet again include the adoption of the company’s AI-powered tools, and a faster-than-expected mix shift toward its higher-margin cloud and services businesses.
At the time of publication, TheStreet Pro Portfolio was long AXON.
