From Yahoo Finance: 2025-05-20 07:43:00

Baron Funds’ “Baron Discovery Fund” Q1 2025 investor letter reported a 6.17% decline, outperforming the Russell 2000 Growth Index. The market weakened due to Trump’s tariff actions, sparking fears of a trade war and global recession. Axon Enterprise, Inc. (NASDAQ:AXON) saw a 33.63% one-month return and closed at $742.32 per share on May 19, 2025.

Baron Discovery Fund highlighted Axon Enterprise, Inc. (NASDAQ:AXON) in its Q1 2025 letter, praising its management team and massive returns. The decision to sell was based on valuation and market capitalization factors. Axon’s stock has shown consistent growth, with 64 hedge funds holding it at the end of Q4 2024. Revenue for Axon Enterprise, Inc. (NASDAQ:AXON) grew 31% year-over-year to $604 million in Q1 2025.

Despite Axon Enterprise, Inc. (NASDAQ:AXON)’s potential, hedge funds prioritize AI stocks for higher returns in a shorter timeframe. While not on the list of 30 most popular stocks among hedge funds, Axon’s revenue growth and consistent performance make it an attractive investment option. Investors seeking promising AI stocks can explore undervalued options with significant upside potential.

Read more: Here’s Why Baron Discovery Fund Sold Axon Enterprise (AXON)