We recently published a list of 10 Tech News Updates Investors Should Not Miss. In this article, we are going to take a look at where Axon Enterprise, Inc. (NASDAQ:AXON) stands against other tech news updates investors should not miss.
On March 6th, CoreWeave, an Nvidia-backed cloud-computing startup, denied claims in a Financial Times report that Microsoft had pulled the plug in some of the agreements it had signed with the cloud provider due to service delivery challenges and missed deadlines.
“We pride ourselves in our client partnerships and there have been no contract cancellations or walking away from commitments. Any claim to the contrary is false and misleading,” a CoreWeave spokesperson told Reuters in an emailed statement.
The news follows after Stack Capital Group made an investment of $10 million in the AI-infrastructure company, according to a company release on March 5th.
“Given its growing data center presence across the United States, Europe, and Canada, CoreWeave is extremely well-positioned to continue capitalizing on accelerating global demand for AI infrastructure and compute capabilities,” said Jeff Parks, CEO of Stack Capital.
According to a Reuters report on March 7th, the Azure parent has begun testing out models from xAI, Meta and DeepSeek to develop AI models to compete with OpenAI.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds, as of Q4 2024.
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A technician in a white coat testing an in-car system on a modern military vehicle.
Axon Enterprise, Inc. (NASDAQ:AXON)
Number of Hedge Fund Holders: 64
Axon Enterprise, Inc. (NASDAQ:AXON) develops technology and weapons products for military, law enforcement and civilians. On March 5th, the company announced an offering of $1.5 billion in senior notes due 2030 and 2033, which will be utilized to support growth and investments in new products, services and technologies.
The company has set an ambitious target to decrease gun-related deaths between police and public to 50% by 2033 through its portfolio of Taser devices, body cameras, in-car cameras, cloud-based evidence management and real-time operations software.
This is backed by strong fourth quarter results, where it booked a 34% year-over-year increase in revenue with a non-GAAP EPS of $2.08, beating consensus estimates of $1.43. The Taser segment is thriving, with the company shipping more than 200,000 devices.
However, escalating costs and expenses could be an issue for the company with cost of sales surging 39% year over year in 2024. Increased operating expenses have impacted the company’s margins.
Overall, AXON ranks 4th on our list of tech news updates investors should not miss. While we acknowledge the potential of AXON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
