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Why Axon Is Poised for Massive International Growth

By Emily Flippen – Dec 9, 2021 at 9:00AM

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Here's how Axon Enterprise could benefit from more international opportunities.

Axon Enterprise (AXON 0.57%) is an American technology company best known for developing products for law enforcement, such as the body cameras that capture police footage seen on your local news.

In this "Industry Focus" video, recorded on Dec. 1, Equity Research Analyst Emily Flippen discusses what's next for Axon internationally. 

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Emily Flippen: I think that's where a lot of investors may be getting confused about this business. If they are familiar with Axon, what they're probably familiar with Axon is not just a taser is but the body cameras. They are used by the vast majority of police forces in the U.S. If you keep up with the recent news, anytime you hear reference to controversies with the police forces here in the U.S., there's a very strong chance that those controversies were captured using equipment that Axon makes, whether it'd be tasers or body cameras or Records Management Solutions, again,

All of this business for the last decade or so, has largely been focused on the domestic opportunity. I think where investors have struggled with this business is thinking, OK, well they're so saturated within the domestic market, what is next for them?

Only recently has this business really started consciously going after that international opportunity, which is a massive market. International growth is one of the biggest reasons why I think investors should consider owning this stock. Less than a quarter of Axon's total sales come from international sales right now, but it's growing much faster. The most recent quarter, domestic sales grew 34%, which is outstanding. To be clear, 34% is nothing to scoff at. But international sales grew 70%, and management said that international opportunities alone expand their addressable market by 70%. International opportunities is when you look at where the market cap at this company could go. I think a lot of it comes down to how well can they execute on selling their products internationally.

Emily Flippen has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Axon Enterprise. The Motley Fool has a disclosure policy.

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