Shares of Axon Enterprise (AXON +0.12%) were moving higher today on reports that President Trump had bought the stock ahead of Immigration and Customs Enforcement (ICE) seeking a $220 million contract for TASERs, Axon's conductive electrical weapon.
The news was enough to send the stock up 10.5% as of 11:44 a.m. ET.
The Axon Taser 10 Image source: Axon.
Axon gets a presidential endorsement
According to federal disclosures, Trump purchased between $1 million and $5 million in Axon stock on Feb. 10, which was about two weeks before ICE solicited a five-year $220 million TASER contract with Axon.
Axon isn't specifically mentioned by name in the announcement, but the product specifications make it clear that it is Axon.
While the move brings up questions about conflicts of interest, which is part of a larger debate around whether elected officials should be able to buy and sell stocks, it's certainly positive for Axon.
Other stocks have risen in the past on interest from Trump or the White House, so it's not surprising that Axon is today. If Trump owns the stock, it's likely to receive favorable treatment from the federal government, and it could receive more contracts, especially as government spending on defense tech is increasing.
NASDAQ: AXON
Key Data Points
What's next for Axon
Axon, which sells both hardware and software, has gotten swept up in the broader sell-off in software stocks, even though the core business remains strong.
Axon reported 34% growth in the first quarter, and the interest from the federal government could help support the company's growth. If it can continue to deliver strong results despite broader concerns about AI disruption, the stock has significant upside potential as it recovers from the earlier pullback.
