Taser International (NASDAQ:AAXN) stock is up over 1.5% today, after announcing a deal with the London Police Department to roll out a trial number of its AXON wearable cameras to police officers throughout the London area. Five hundred officers would each be equipped with a camera, which would upload a constant feed to cloud storage, ideally in the hope that it could reduce complaints, increase accountability, and reduce legal costs for the department.
Now, while 500 cameras isn't an enormous amount of revenue for Taser, this is only a pilot program. London's police department is huge, with around 31,000 officers, so if this delivers the kind of results the LPD is looking for, this could represent a massive opportunity for Taser in the future.
In this video from Tuesday's Stock of the Day, however, Motley Fool analyst Blake Bos says he's still a bit wary of Taser's valuation. At about 50 times earnings and six times sales, he still sees this as a very expensive stock, and would prefer to know the company and its prospects just a bit better before paying that high price.
Blake Bos and Mark Reeth have no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.