Jim Cramer on 10 Stocks With The Biggest Declines Last Week

1. Axon Enterprise, Inc. (NASDAQ:AXON)

Number of Hedge Fund Holders: 64

Cramer noted Axon Enterprise, Inc.’s (NASDAQ:AXON) remarkable performance over time, despite its recent decline. Formerly known as TASER, the company experienced a significant drop of almost 28% within just three days. Cramer pointed out the company’s impressive track record of success in previous years. He added:

“It pivoted… to police body cameras, evidence management software Those were good businesses. So why then did the stock just get completely obliterated? Weirdly, there really wasn’t any bad news from the company. Instead, it was a one-two punch of downgrades from analysts at boutique research firms that failed Axon. The first from Northcoast caused the stock to sink more than 16% last Wednesday before another downgrade from Craig-Hallum caused it to fall over 8% on Thursday.

The stock fell another 5% on Friday when the market-wide selling really got going. Now Axon reports tomorrow after the close, but clearly, people wanted to ring the register going into the quarter and the bearish analysts gave them a real excuse to do so. Very different attitude from what we’ve seen in the past few months, huh, where momentum stocks are frankly unstoppable.”

Axon (NASDAQ:AXON) is a company specializing in the development of TASER devices and offering both hardware and cloud-based software solutions to assist law enforcement in capturing, storing, managing, and analyzing digital evidence.

While we acknowledge the potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 was originally published at Insider Monkey.