NCSYF - Q3 Headwinds Blow Axon To The Sidelines For Now

• The "defund the police" initiative appears to have fizzled with few consequences for Axon.
• Local governments are under pressure to reduce budgets. Axon provides "mission critical" equipment and will be less affected than other suppliers.
• Axon owns the market for Tasers and body cameras, but the war is being fought on evidence management where competition is fierce.
• Axon is fairly valued on a relative basis and comparable to competitors such as Motorola Solutions. The company scores an excellent 52% on the Rule of 40.
• The current headwinds including lower Q3 margin and newly initiated government shutdowns put me on the sidelines for the time being.

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