Our Plan for Axon as Renewed Pressure Weighs on the Shares
A renewed oversold condition vs. multiyear visibility and a favorable mix shift have us poised for a potential move.
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Chart of the Day: This Stock Is Entering a Flashing Yellow Light
Renewed pressure on the market is weighing on shares of Axon Enterprise (AXON) , forcing them back into an oversold condition. This move, which is coming on the lack of any new developments, has erased the post-Q4 2025 earnings surge and placed the stock at levels last seen in September 2025.
While we can understand some additional pressure on the shares amid larger market weakness, it comes against the continued step up in Axon’s future contracted bookings to $14.4 billion. That provides multiple years of visibility when viewed against the $3.59 billion and $4.63 billion in expected revenue for this year and 2027.
As we've discussed, it is that continued move higher and the visibility it brings that keep us not only shareholders, but bullish ones. To that, we can add the continued mix shift toward the company’s higher-margin software and service business, which is not too dissimilar from what we’ve seen at Apple (AAPL) as it has evolved over the last several years.
Understanding this against the new RSI level of 26.44, and the Pro Portfolio’s exposure to AXON, we are inclined to pick up more shares. The timing for that decision will hinge on developments in the market tonight and tomorrow, balanced against the degree of their oversold condition.
AXON shares bottomed at lower RSI figures in Q4 2025 and earlier this year. Should we see them hit levels near those, it has the potential to hasten our move, especially if the S&P 500 approaches or enters an oversold condition. As of now, the RSI level for the S&P 500 is near 44.50.
Related: Tesla Heading Toward Buying Opportunity as Misunderstanding Prevails
At the time of publication, TheStreet Pro Portfolio was long AXON and AAPL.
