With Axon Enterprise Stock Sliding, Have You Assessed The Risk?
Axon Enterprise (AXON) stock is down 21.1% in 5 trading days. The recent slide reflects renewed concerns around AI disruption and lofty valuations in the broader SaaS sector, 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 $38 Bil company with $2.6 Bil in revenue currently trading at $483.58.
- Fundamentals: Last 12 month revenue growth of 32.0% and operating margin of -1.1%.
- Liquidity: Has Debt to Equity ratio of 0.06 and Cash to Assets ratio of 0.37
- Valuation: Axon Enterprise stock is currently trading at P/E multiple of 147.5 and P/EBIT multiple of 160.0
- 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 $339 – 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.
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 $483.58
| 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 | 1,918 days | 1,480 days |
Feeling jittery about AXON stock? Consider portfolio approach.
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