We recently published a list of Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently. In this article, we are going to take a look at where Axon Enterprise, Inc. (NASDAQ:AXON) stands against other NASDAQ 100 stocks that Jim Cramer discussed recently.

Jim Cramer, the host of Mad Money, recently shared his perspective on the stock market, especially reflecting on the events of 2024. He emphasized that years like 2024 don’t come around often, where everything feels so clear and the winners are so apparent. According to Cramer, if investors tried to get too creative or overcomplicate their strategies, they likely missed out on the obvious winners.

“If you tried to get creative, you tried to get clever, you missed out on some truly idiot-proof winners. The losers on the other hand, well, they were not as easy to spot because in many cases they were the market’s former winners, even if they long ago lost their way.”

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As part of his annual analysis on Mad Money, Cramer examined the top and bottom performers of the Nasdaq 100 in 2024, offering insights into what worked and what didn’t. He reviewed how, in many instances, investors tend to become frustrated with stocks that are overhyped, knowing deep down that eventually, something better will come along. He likened these overly loved stocks to a “mouse trap,” where the price could only go down from such lofty heights, warning that many investors would regret not jumping off the metaphorical spaceship before the crash.

Cramer shared his thoughts on the five best performers in the NASDAQ 100 for 2024, calling it a “real good collection of winners” and expressing a genuine fondness for these stocks. He also noted that, while the Nasdaq 100 losers may have appeared to have suffered dramatic declines, the reality was more nuanced.

“The Nasdaq 100 losers, though they aren’t so horrible as the declines would make you think, but they got clobbered because they were emblematic of golden calves, worshipped for a long time before being revealed as not so special after all.”

Our Methodology

For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Axon Enterprise, Inc. (NASDAQ:AXON)

Number of Hedge Fund Holders: 46

Cramer has been a fan of Axon Enterprise, Inc. (NASDAQ:AXON) for a while now and mentioned that the stock doesn’t get the attention that it is due.

“Finally, there’s Axon, the body cam and taser company that owns the software as a service model for the local criminal justice system. I wish I had specifics about which jurisdictions are taking their package, but the growth continues to be shockingly strong both here and now overseas.

Maybe there aren’t enough analogs, but I always feel like Axon doesn’t get the attention it deserves from the analysts. I’ve liked it since it was Taser, TASR, and I like it even more even as the stock was up 130% last year, it needs a split to keep rolling.”

Axon (NASDAQ:AXON) is a leading company that develops TASER devices and provides hardware and cloud-based software solutions to support law enforcement in capturing, storing, managing, and analyzing digital evidence. Its strong position in the industry stems from the widespread use of its TASER products by U.S. law enforcement, which has allowed the company to expand into body-worn cameras and digital evidence management software.

In recent quarters, it has focused on further expanding its technological offerings. CEO Rick Smith highlighted the opportunity presented by potential legislation addressing drone-related challenges, leading the company to pivot toward drone technology. The shift was further solidified with Axon’s acquisition of Dedrone in the third quarter.

Management believes that the addition of Dedrone will increase Axon’s (NASDAQ:AXON) total addressable market (TAM) by approximately $14 billion. Over the past year, Axon’s strategic acquisitions, including Dedrone, Sky-Hero, and Fusus, have expanded its TAM by over 50%, growing from $50 billion to $77 billion.

Additionally, in April 2024, Axon launched Draft One, a generative AI software that automates police report writing using body camera footage. The product quickly achieved a $100 million revenue pipeline, surpassing previous records, and received highly positive customer feedback, which CEO Rick Smith described as the best the company has ever seen.

Overall, AXON ranks 7th on our list of NASDAQ 100 stocks that Jim Cramer discussed recently. While we acknowledge the potential of AXON as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.