On Monday, Axon Enterprise (AXON) fell by 5.05%. The stock struggled to sustain its breakout at above $600. AXON stock is consolidating to lower prices after returning 130.1% in the last year. Although it is not likely, sellers could test the 200-day simple moving average at around $400.00.
In the third quarter, Axon grew its revenue by 30% Y/Y, In the U.S., revenue grew by 44%. Margins expanded again for the eighth consecutive quarter. Axon has a dominant product that the military and law enforcement need. It faces no meaningful competition. When it adds artificial intelligence to its products, profitability will expand.
Palantir (PLTR) fell by almost 5% to close at $75.92. The rally at $80 is stalling as valuations stretch further. Morgan Stanley initiated coverage of the stock with an underwhelming ‘Underweight’ rating. Still, the firm acknowledged that Palantir could win more U.S. government contracts.
Essex Property Trust (ESS) dropped by 4.03%, continuing its downtrend. The stock is sensitive to interest rates. Rate cut hopes weakened last month after the government posted strong inflation and jobs data. On Friday, a strong U.S. job would weaken the chances of another rate cut.