12/4

Why is Axon Stock Up Today After AI Integration

Axon Enterprise, Inc. (AXON) saw its stock rise by 2.62% to close at $687.39 on December 4, 2024, following a significant upgrade from Morgan Stanley. The investment firm elevated its rating to "Overweight," highlighting the potential of artificial intelligence to drive substantial growth in sales of Taser devices and body cameras. Morgan Stanley analysts project a 25% to 30% growth rate, attributing this to the integration of AI software, which typically offers higher profit margins. This upgrade, coupled with a new five-year contract with the City Council in Meriden, Connecticut, valued at $3,465,347, has bolstered investor confidence. The contract includes an AI program aimed at enhancing police report writing and virtual reality training, further underscoring the demand for Axon's innovative solutions.

The stock opened at $667.09 and reached a high of $689.39, with trading volume surpassing the average at 786,758 shares, indicating strong investor interest. Additionally, Argus raised its price target for Axon to $800, reflecting increased confidence in the company's market position and growth prospects. Axon's stock has been trading near its 52-week high, showcasing robust year-to-date gains.