Shares of law enforcement technology company Axon Enterprise (NASDAQ: AXON) fell 10% on Tuesday, and surprisingly, there isn't a good explanation for the drop. There weren't any new press releases, filings, or comments from analysts. This commentary doesn't feel satisfying; we feel like there always has to be something behind a big move like this. But sometimes the stock market is just this way.
Unlike many other investments, the market is volatile . For example, it would be crazy to see home values fall 10% in a day. But stocks can, and frequently do, fall unexpectedly. Some say this is the risk that comes with investing in stocks. But I beg to differ. Axon's drop today merely illustrates the volatility that comes with stocks. Consider that Axon's stock is still up over 40% in 2021, and there's not a real satisfying explanation for that much of a rise, either. Volatility works both ways.
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Why Axon Enterprise Stock Fell Today