Axon Enterprise Stock Drop Looks Sharp, But How Deep Can It Go?
Axon Enterprise (AXON) stock is down 29.8% in 21 trading days. The recent slide reflects concerns around missed profit targets despite record revenue and rising costs from tariffs and investments, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Axon Enterprise stands today.
- Size: Axon Enterprise is a $42 Bil company with $2.6 Bil in revenue currently trading at $533.21.
- Fundamentals: Last 12 month revenue growth of 32.0% and operating margin of -1.1%.
- Liquidity: Has Debt to Equity ratio of 0.04 and Cash to Assets ratio of 0.37
- Valuation: Axon Enterprise stock is currently trading at P/E multiple of 218.9 and P/EBIT multiple of 237.4
- Has returned (median) 68.9% within a year following sharp dips since 2010. See AXON Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell AXON Stock
That brings us to the key consideration for investors worried about this fall: how resilient is AXON stock if markets turn south? This is where our downturn resilience framework comes in. Suppose AXON stock falls another 20-30% to $373 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- AXON stock fell 58.5% from a high of $203.51 on 11 February 2021 to $84.37 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 March 2023
- Since then, the stock increased to a high of $870.97 on 7 August 2025 , and currently trades at $533.21
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.5% | -25.4% |
| Time to Full Recovery | 294 days | 464 days |
2020 Covid Pandemic
- AXON stock fell 40.8% from a high of $88.90 on 19 February 2020 to $52.61 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 June 2020
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -40.8% | -33.9% |
| Time to Full Recovery | 75 days | 148 days |
2018 Correction
- AXON stock fell 46.9% from a high of $74.89 on 23 July 2018 to $39.74 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 26 November 2019
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.9% | -19.8% |
| Time to Full Recovery | 337 days | 120 days |
2008 Global Financial Crisis
- AXON stock fell 85.8% from a high of $18.81 on 9 October 2007 to $2.68 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 February 2014
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -85.8% | -56.8% |
| Time to Full Recovery | 1918 days | 1480 days |
Feeling jittery about AXON stock? Consider portfolio approach.
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Single stocks swing wildly but staying invested matters. A well built portfolio keeps you invested, captures upside and softens the blows from individual stocks
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.