Jim Cramer has spent months giving mixed signals on Axon Enterprise, Inc. (NASDAQ:AXON). While he regularly praises the company's law enforcement products, he has repeatedly warned that the stock costs too much. That caution finally turned into a pass during the August 6 episode of Mad Money when a caller asked about buying the post-earnings pullback:
No, no, I don't want to touch it. It's only down 8%, but it's been an amazing performance for so many years. The stock's had too big a run; I want to move elsewhere.
Before telling investors to look elsewhere in August, Cramer had flagged valuation and competitive friction earlier in the year. During the May 15 episode of Mad Money, a caller asked about a long-term position held since 2015. While acknowledging a strong management presentation that lifted the shares that day, Cramer pointed to lingering hurdles:
Well, they had, you know, Axon was on today. I thought they acquitted themselves, which is why I think why the stock was up three bucks. I have been, we were very worried about Motorola competition when we met with them when we were up at Harvard Business School. I am still concerned about that, and I still think that this market does not like high multiple stocks, and Axon is a high multiple stock.
Cramer expanded on that valuation tension during the June 3 episode. When a shareholder asked whether to buy more, sell, or hold, he advised maintaining the existing position strictly on product quality, while warning that the price-to-earnings multiple left little room for error:
#money #caller
No, no, I don't want to touch it. It's only down 8%, but it's been an amazing performance for so many years. The stock's had too big a run; I want to move elsewhere.
Before telling investors to look elsewhere in August, Cramer had flagged valuation and competitive friction earlier in the year. During the May 15 episode of Mad Money, a caller asked about a long-term position held since 2015. While acknowledging a strong management presentation that lifted the shares that day, Cramer pointed to lingering hurdles:
Well, they had, you know, Axon was on today. I thought they acquitted themselves, which is why I think why the stock was up three bucks. I have been, we were very worried about Motorola competition when we met with them when we were up at Harvard Business School. I am still concerned about that, and I still think that this market does not like high multiple stocks, and Axon is a high multiple stock.
Cramer expanded on that valuation tension during the June 3 episode. When a shareholder asked whether to buy more, sell, or hold, he advised maintaining the existing position strictly on product quality, while warning that the price-to-earnings multiple left little room for error:
#money #caller
4 days ago
