Cohen Sells Apple, Buys Axon Amid Market Challenges

Steven Cohen's recent trades signal a cautious outlook. After selling Apple, which faces declining market share and potential revenue losses, he invested in Axon, which shows strong growth. Investors should weigh these changes carefully.

Date: 25-01-2025

AI Rating: 4

Earnings Per Share (EPS): Axon reported non-GAAP earnings increased 19% to $1.45 per diluted share, reflecting strong financial health and growth potential for investors. Conversely, due to Apple’s struggles, general profitability appears threatened.

Revenue Growth: Axon’s revenue soared 32% to $544 million, propelled by sales in Tasers and body cameras. Furthermore, the company raised its 2024 revenue projections to a similar growth rate. In contrast, Apple faces a notable decline in iPhone sales, impacting its revenue growth prospects.

Net Income and Profit Margins: Specific net income or profit margin figures for either company were not disclosed. However, Apple's projected annual revenue loss of $20 billion represents a significant potential hit to profitability.

Free Cash Flow (FCF): No information on free cash flow was provided in the report.

Return on Equity (ROE): There was no mention of the return on equity metrics for either company.

Investors should note that Cohen’s decision to exit a large holding in Apple indicates a risk-averse stance as the company confronts declining sales and potential significant revenue loss. Meanwhile, the positive indicators from Axon, including a surge in revenue and favorable growth trajectory in AI innovations, paint a more optimistic picture and suggest investor interest could shift toward it. The dichotomy in performance prospects between Apple and Axon creates a compelling narrative for stock evaluation.

Stocks: AAPL AXON