LQAI0.140%
as of Jul 17
AXON
DefensiveAXON ENTERPRISE INC
Axon Enterprise, Inc. provides public safety technology solutions in the United States and internationally. The company operates in two segments, Software and Services, and Connected Devices. The Software and Services segment develops, manufactures, and sells cloud-based software-as-a-service solutions to capture, store, manage, share, and analyze video and other digital evidence.
Close · 3M
+19.58%
Held by 1 AI ETF
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals2
Win rate50% (1/2)
Avg buy return+8.16%
LQAI · Weight decrease · 2d
The weight reduction for AXON is a gradual, consecutive daily decrease of 0.01% within LQAI, observed over three days after the stock's initial entry into the portfolio. This nuanced adjustment aligns with LQAI’s AI-driven strategy, which, despite not having a heavy factor tilt, is responsive to shifts in market data and appears to be subtly trimming exposure to AXON following a significant +43.5% 30-day price return. Given AXON's current price of $565.80 and elevated valuation multiples like a PER of 221.39 and PBR of 13.82, the Qraft AI ranking engine may be re-evaluating the stock's overall attractiveness within its US large-cap core universe. Such incremental rebalancing, permitted by the fund’s weekly rebalance schedule for its approximately 100 holdings, suggests the AI is managing risk by reducing a position that has recently seen a sharp upward move while maintaining a measured allocation.
weight 0.170% → 0.150% (-0.020 pp)·stock up 46.1% in the 30 days before
Jul 9·entry $582.00·now $527.48
-9.37%
since Jul 9
LQAI · New entry · 1d
weight 0 → 0.170% (new)·stock up 60.4% in the 30 days before
Jul 7·entry $640.46·now $527.48Fresh
-17.64%
since Jul 7
AIEQ · Exit · 1d
Employing its IBM Watson NLP engine to ingest thousands of data points daily, AIEQ's sentiment-plus-fundamentals hybrid strategy likely identified a decisive shift in AXON's profile, triggering its removal from the fund's 140-180 US stock portfolio. Given AXON's current price at 52% of its 52-week high and a 1-year return of -38.8%, the AI's daily ranking system may have flagged sustained underperformance despite a recent 30-day return of +11.4%. Further contributing to this divestment, the system likely assessed AXON's fundamental valuation, noting its P/E ratio of 175.58. This swift removal on May 30, following a consistent 0.0500% allocation, reflects the fund's high-turnover nature and ability to rebalance daily based on its dynamic stock rankings.
weight 0.050% → 0 (exited)·stock up 12.0% in the 30 days before
May 30·entry $476.88·now $527.48
+10.61%
since May 30
AIEQ · New entry · 1d
The AI ETF likely re-established a position in AXON, despite its very high PER and PBR, driven by its impressive 33.47% revenue growth, suggesting the algorithm prioritizes strong growth trajectories over current valuation. This indicates AI funds can favor high-growth companies with significant future potential, even when traditional value metrics appear stretched, which retail investors should consider as a higher-risk, growth-focused strategy.
weight 0 → 0.050% (new)·stock down 5.0% in the 30 days before
May 3·entry $393.75·now $527.48Chased
+33.96%
since May 3
PQUS · Exit · 1d
The AI ETF likely removed AXON due to its extremely high Price-to-Earnings (PER) and Price-to-Book (PBR) ratios, suggesting significant overvaluation that its relatively low Return on Equity (ROE) could not justify, despite strong revenue growth. For retail investors, this highlights the importance of scrutinizing valuation metrics alongside growth, as even high-growth companies can be deemed too expensive by algorithms focused on risk-adjusted returns.
weight 0.030% → 0 (exited)·stock down 5.4% in the 30 days before
Apr 30·entry $401.76·now $527.48
+31.29%
since Apr 30
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 2
The AI ETF PQUS recently exited AXON, which aligns with the framework's 'Fail' verdict. A Buffett-style analysis would find the current valuation metrics unsupportable given the low Return on Equity, leaving no margin of safety for investment.
- Circle of CompetenceAxon's business model, combining hardware sales with recurring high-margin software subscriptions to a stable public safety customer base, allows for reasonably predictable long-term cash flow projections.
- Economic MoatAxon benefits from strong brand recognition (Taser), significant switching costs for law enforcement agencies embedded in its ecosystem, and the high barriers to entry in the public safety technology sector.
- ManagementInformation on management's candor, capital allocation discipline, or skin in the game is not available in the provided data.
- Financial HealthThe company fails the financial health criterion with a stated Return on Equity (ROE) of 4.31%, which is significantly below the minimum threshold of 10% in any single year and the 15% average.
- Margin of SafetyWith extremely high PER, PBR, and EV/EBITDA multiples, the current price offers no defensible margin of safety, despite the company's high revenue growth and strong competitive position.
While Axon operates within a predictable circle of competence and possesses a durable economic moat through switching costs and brand, its financial health, as evidenced by a low Return on Equity, and an exceedingly high valuation preclude a 'Pass' rating. The current price offers no margin of safety within this investment framework.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.