It seems every time we publish a TheStreet Pro Portfolio Alert sharing the latest ripped-from-the-headlines confirmation events, there are multiple proof points for AI adoption. We saw that again this past weekend, and it keeps us bullish on ServiceNow (NOW) , Elastic (ESTC) , and other portfolio positions.
To that already growing list, we can add Axon Enterprise (AXON) competitor Motorola Solutions (MSI) . The company has launched what it is calling the SVX, a device that combines a remote speaker microphone, body camera, and AI assistant named Assist, to help first responders seeking ways to save time and react to emergencies.
While not quite the headline-driving announcement that we would see from OpenAI, Meta (META) , or some other Big Tech-related companies, this is another example of AI helping reshape an industry and driving productivity. It also speaks to our concern about AI adoption driving network capacity utilization issues.
And before some get concerned that Motorola may be leaping ahead of Axon, Axon has discussed several AI product offerings on its last few earnings calls and the positive impact they should have on pricing and margins. Examples include its Draft One offering that uses AI-driven report generation to cut report writing time, Axon Evidence that enhances evidence review, and others.
We expect to hear more about SVX and other comments about public safety and AI when Motorola Solutions reports its quarterly results on May 1. We will dig into those comments and what they could mean for Axon’s quarterly results, guidance, bookings, backlog, and margins. One of the keys for us when it comes to Axon is the one-two punch of rising public safety spending and the benefits of its shifting business model toward higher-margin, recurring revenue streams.
While the portfolio has a good-sized position in AXON, it is one that we would look to build on at the right time. With heavy resistance between $562-$593, should we see the market respond, as we suspect it might, to companies issuing more challenging June-quarter earnings guidance, we may get the opportunity to pick up more AXON shares at lower lievels. With that in mind, we’ll have a more technical look at AXON shares on Tuesday.
At the time of publication, TheStreet Pro Portfolio was long AXON, NOW, ESTC and META.