Shares of law enforcement-products company Axon (NASDAQ:AXON) jumped 25.8% in June, according to data provided by S&P Global Market Intelligence, as the company continued to make progress on growth initiatives. It also didn’t hurt that growth stocks recovered last month after falling due to inflation fears through most of the spring.
Axon announced a new partnership with DroneSense to bring situational awareness and drone-management tools to Axon Air. The companies will work to integrate DroneSense into the Axon Evidence and Axon Respond, which are critical tools for first responders using the Axon platform.
The company also released the Axon Fleet 3 camera for vehicles. Officers can scan license plates in real time and record video with two integrated cameras. Vehicle cameras have never been a particularly successful market for Axon; given the success of body cameras and cloud services, it’s a natural product extension for the company to expand into. Fleet 3 could lead to much higher adoption for fleet vehicles in law enforcement, expanding the company’s reach further.
While these advances are incremental for Axon, they’re important for the company long term. To grow, Axon needs to reach more customers and generate more revenue from each customer, which these line extensions do.
But why was the stock up last month? Falling interest rates and reduced fears about inflation caused growth stocks to rally sharply. And that rise in growth stocks included Axon, which investors will take given the big monthly gain.
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