$10,000 in Axon Stock a Decade Ago Would Be Worth About $329,000 Today. The Stock Is Down Over the Past Year.
2026-08-08 09:23
•Daniel Sparks •The Motley Fool
•• • Axe Cap view
Axon's Rollercoaster: Long-Term Winner but Short-Term Slump
Axon Enterprise's share price has fallen despite stellar growth, offering a potentially attractive entry point for patient investors.
Axon Enterprise’s story is a classic example of how markets sometimes punish growth stocks for their high prices rather than their fundamentals. Over the last decade, what began as a weapons manufacturer evolved into a software-driven public safety firm, rewarding patient investors with a 32-fold gain. Yet in the past year, the stock is down over 35%, largely because its valuation multiple became hard to justify in a rising interest rate environment. Its strong recurring revenue streams and hefty $15 billion pipeline suggest the business is healthy. However, South African investors should temper enthusiasm: there’s no direct JSE equivalent, and the stock's fate could influence appetite for high-growth tech plays locally, like Naspers or Prosus. Watch how USD/ZAR behaves, as a weaker rand could help offshore earners. Still, if global growth slows sharply or regulatory cracks appear in the US public safety market, Axon’s story could sour quickly. this is just our opinion and not financial advice
For South African investors, consider watching USD/ZAR closely when exploring global high growth stocks like Axon. Domestically, stay selective in growth tech and prefer established dividend payers over chasing high-flying multiples.
- AXON
- USD/ZAR
- Naspers
- Prosus
- U.S. regulatory changes on public safety technology
- Global economic slowdown impacting growth multiples
6/10
Axon Enterprise has delivered exceptional long-term returns, turning a $10,000 investment from 2016 into approximately $329,000 today through a successful transformation from a weapons manufacturer to a software-focused public safety company. Despite strong Q2 results showing 35% revenue growth and 10 consecutive quarters above 30% growth, the stock has declined over 35% from its August 2025 peak of $870.97, primarily due to its high valuation multiple rather than fundamental deterioration. The analyst believes the business remains healthy with strong recurring revenue and future bookings, and suggests the stock price now offers a reasonable entry point for patient investors.
Our take is based on reporting first published by The Motley Fool.