In other words, it hurts a lot more when share prices go down than it feels good when they go up. And this is obviously amplified when there’s a stock market crash.

However, I think it’s possible over time to rewire/retrain your brain, and the following Warren Buffett quote helps with this reframing.

Owning businesses

If you own your stocks as an investment – just like you’d own an apartment, house or a farm – look at them as a business…Find a good bunch of businesses and hold them.
Warren Buffett

The key to not panicking in a market crash is to view your portfolio as a collection of businesses rather than just stocks. As a long-term investor, this is how I view things — I own small pieces of real-world companies.

Therefore, because I’m very familiar with the businesses I’m invested in, I don’t tend to panic when the stock market tanks. Such meltdowns are often related to investor sentiment or some sort of macroeconomic concern rather than the actual businesses I hold and their future prospects.

This sounds quite a trivial difference, but it’s really not. In fact, it often gives me the confidence to buy more shares when they’ve sold off heavily.

“To be greedy when other are fearful“, as Warren Buffett famously advised.

In contrast, someone who just owns a bunch of stocks is likely to feel bewildered and fearful during a market meltdown. Often, the only value they attach to them is the price they currently trade at. And when that plummets, what is left to hold onto?

Here are some basic questions every long-term investor should be able to answer about a company they’re invested in:

• Who is running the company, particularly the CEO(s)?
• How does the company make money?
• How profitable is it?
• Who is the competition?
• What competitive advantages does it possess?
• What are the key risks?
• How cheap/expensive are the shares today?

A stock example

Know what you own, and know why you own it.
Peter Lynch

One holding I wouldn’t fret about too much during a broad market sell-off is Axon Enterprise (NASDAQ:AXON). The company sells Tasers, bodycams, software, and counter-drone services to law enforcement and other agencies worldwide.

Whatever is happening in the stock market or if there’s a recession, I’m certain that police officers are not going to stop using Tasers and bodycams. The first saves lives by reducing the need for bullets, while the latter improves accountability.

The reason I own shares in this firm is because the long-term growth opportunity is very large. While its Tasers and bodycams are well established in the UK and US, the penetration rate across markets in Latin America, Asia, and Africa is around 1%-5%.

Of course, there are still company-specific risks. One is a high valuation, with investors pricing in strong future growth (Axon has delivered nine consecutive quarters of 30%+ revenue growth). If growth slows unexpectedly, the stock could tumble.

However, given the large opportunity ahead, I think the stock is worth considering while it’s 40% cheaper than last summer.

Should you invest £5,000 in Axon Enterprise right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Axon Enterprise made the list?

Ben McPoland owns shares in Axon Enterprise.

The post Why I’m not scared of a stock market crash appeared first on The Twelfth Magpie.

Given its share price weakness, I’ve been buying shares in this company for my ISA aggressively over the last few weeks. And I’m not the only one who’s been snapping them up.

This company has enormous growth potential

In my view, Axon has a ton of long-term growth potential. Today, it has a range of state-of-the-art products designed to protect the public, including TASER guns, AI-powered police body cams, and anti-drone solutions.

Taking a closer look, some of its products are incredibly innovative. For example, Axon’s Guardian acts as an automated, real-time ‘digital partner’ for first responders, running continuously in the background on body cams to flag danger before an officer can manually call for help.

Then there’s Draft One, which takes audio transcripts from an officer’s body cam to instantly draft the narrative section of a police report. Axon claims this can cut report writing time by up to 70%, enabling officers to spend more time in the field and less time behind their desks.

It also offers Dedrone, which utilises machine learning to detect, track, identify, and mitigate drone threats. This is going to be protecting stadiums at this year’s FIFA World Cup and is also seeing interest from data centre companies.

New customers

It’s worth pointing out that Axon’s customers aren’t just government organisations/police. Today, private companies are adopting its solutions.

For example, companies like Walmart, Aldi, and H&M are experimenting with body cams in an effort to reduce theft. Research shows that when a confrontational customer or shoplifter realises they’re being recorded, their behaviour immediately shifts.

Revenues are soaring

Given all this innovative technology, Axon is seeing prolific growth. In 2025, for example, revenue amounted to $2.8bn, up 33% year on year.

This year, analysts forecast revenue of $3.7bn. Next year, they anticipate a top line of $4.7bn.

Why is the stock down?

So, why is the stock down if revenue is surging? Well, this company has been sucked into the software sell-off.

It seems some investors believe that AI is going to disrupt the business. I believe these investors have got it wrong though – I see this company as an AI beneficiary so I’ve been investing.

Who else is buying?

Baillie Gifford – which runs the Scottish Mortgage Investment Trust – has also been buying. According to regulatory filings, it snapped up 2.5m shares in Q1.

Another firm that accumulated stock in Q1 was Altimeter Capital. This is run by Brad Gerstner who’s a big name in the tech investing space.

Is there an investment opportunity?

Given the growth potential here, and the buying activity from major investors, I believe Axon shares are worth a closer look. To my mind, they offer a compelling investment proposition at current levels.

There are plenty of risks (including competition from rivals like Motorola) and investors need to expect share price volatility as the valuation is high. Taking a three-to-five year view, however, I expect them to perform well.

Should you invest £5,000 in Axon Enterprise right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Axon Enterprise made the list?

Edward Sheldon owns shares in Axon Enterprise and Scottish Mortgage Investment Trust

The post I’m aggressively buying this S&P 500 growth stock for my ISA while it’s down 40% appeared first on The Twelfth Magpie.

Looking for investment opportunities linked to this exciting event? Here are three stocks to check out.

Apparel demand will be high

One thing we always see during World Cups is heavy spending on football apparel. So, Sports Direct owner Frasers Group (LSE: FRAS) could be worth a look right now.

I expect it to see strong sales over the next few months as consumers load up on England shirts and other kit. Note that if you have a Frasers Plus account, the shirts are cheaper here than at other major retailers.

In terms of the valuation, this stock looks pretty cheap at the moment. Analysts are expecting earnings per share of 98p this year and the forward-looking price-to-earnings (P/E) ratio is only around eight. That means there could be some value on offer.

That said, there are plenty of risks here in the medium/long term including brand risk (Frasers owns a ton of brands today), ownership risk (ex-CEO Mike Ashley owns around 70% of the shares) and macroeconomic risk. So, it’s not a stock I’d go ‘all in’ on.

Booze sales will rocket

Another thing that tends to spike during World Cups is booze sales. Typically, a lot of alcohol is consumed while the tournament is going on.

This could benefit FTSE 100 alcoholic beverages powerhouse Diageo (LSE: DGE). It’s the owner of Guinness, Tanqueray, Johnnie Walker, and many other well-known names.

Now, like Frasers, there are risks to be aware of with this name. Today, many people are drinking less alcohol due to health concerns and/or GLP-1 weight-loss drugs. As a result sentiment towards the shares is weak.

Yet the stock is a long way off its highs right now (more than 50%). And at current levels, it looks pretty cheap (the forward-looking P/E ratio is only around 13). So, I think it could be worth a closer look.

What about security?

My last pick is a little more out of left field. It’s Nasdaq-listed public security specialist Axon Enterprise (NASDAQ: AXON).

I expect security to be taken very seriously during this tournament given the geopolitical backdrop. And I see Axon, which offers everything from TASERs to anti-drone solutions, as well placed to benefit.

It’s worth noting that Axon has recently mentioned that its ‘Dedrone’ solutions – which can detect, identify, track, and mitigate unauthorised or rogue drones – are going to be used to protect stadiums at this year’s World Cup. Ultimately, they’re a central part of the airspace security framework for the event.

Now, the P/E ratio here is in the 60s which adds risk. If Q2 earnings are disappointing the share price is likely to fall. However, I’m comfortable with the valuation given the company’s rate of growth with nine consecutive quarters of 30%+ revenue growth. I believe the shares are worth considering for a diversified portfolio.

Should you invest £5,000 in Diageo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo Plc made the list?

Edward Sheldon owns shares in Diageo, Axon Enterprise, and Nasdaq

The post 3 shares to consider buying for the 2026 World Cup appeared first on The Twelfth Magpie.

While risking sounding like a broken record, I’m bullish on this FTSE 100 stock long term. But it’s also trading close to a new all-time high and is far from cheap.

Instead, I currently prefer this S&P 500 stock that’s down 49%. Over a five-year time frame, I think it will produce higher returns than Rolls (though I continue to hold both).

Multiple high-growth markets

The stock I’m talking about is Axon Enterprise (NASDAQ:AXON). This firm started selling Tasers, then bodycams and dashcams, before moving into software offerings based around digital evidence storage.

Today, it’s branching out into various high-growth areas, including drones, virtual-reality Taser training, and artificial intelligence (AI). In Q1, Axon achieved its ninth consecutive quarter of 30%+ growth, as revenue jumped 34% to $807m.

Management also bumped up full-year guidance to a range of 30%-32%, from 27%-30% previously. And it expects a decent adjusted EBITDA margin of 25.5%.

SaaSpocalypse risk?

Despite these strong numbers, the stock is down 49% since August. Partly this reflects valuation concerns, as it got ahead of itself back then and was due a correction.

But a lot of the decline is because Axon, which now derives around 44% of its total revenue from software, has sold off along with other software stocks. Basically, it has been caught up in the AI ‘SaaSpocalypse’ fears.  

However, as Axon President Josh Isner points out:

It’s so ironic we’re caught in the middle of this SaaSpocalypse fear. It’s like we are the company going on offence in AI. Our first year of selling AI products to police, we sold almost $1bn of it, for a company whose revenue was around $3bn last year.

Launched in late 2024, the AI Era Plan has become Axon’s fastest selling product ever. It’s a bundle of AI products, including Draft One, which automatically transcribes bodycam footage to draft police reports.

The appeal of this AI product is straightforward. In the US, police officers can spend around 40% of their time writing reports. Using Draft One, that goes down to roughly 20% (gaining back weeks per year).

In Q1, AI products revenue was up more than 700%. Adoption is very early.

Drones are taking off

Arguably, the biggest risk with this stock is the valuation, with a high forward price-to-earnings ratio of 55. If growth slows more than expected, the stock could sell off heavily as the market resets expectations.

However, the commercial opportunities are multiplying for Axon. For example, drones are a big growth area, as conflicts in Ukraine and Iran have shown that cheap drones can easily be weaponised for reconnaissance or direct attacks.  

Dedrone, Axon’s counter-drone business, saw Q1 revenue rocket over 300% as data centres, oil refineries, nuclear facilities, and stadiums (including upcoming World Cup venues) beefed up security.

Finally, the firm is seeing rising international demand for Tasers and bodycams from Latin America, Europe, the Middle East, and Africa. Again, adoption is early.

The size of the long-term opportunity here makes me think the stock’s worth considering, despite a high valuation.

Should you invest £5,000 in Axon Enterprise right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Axon Enterprise made the list?

Ben McPoland owns shares of Axon Enterprise and Rolls-Royce.

The post I’m bullish on Rolls-Royce shares, but I prefer this S&P 500 stock, down 49% appeared first on The Twelfth Magpie.

Interested to know where the company is investing today? Read on to find out the name of a growth company the firm is piling into.

Heavy buying activity

Earlier this week, I went over Baillie Gifford’s most recent 13F filing. This is a US regulatory filing that shows the trades large investment managers have been making and their holdings at the end of the previous quarter.

Looking at this filing, one trade jumped out at me – aggressive buying in Axon Enterprise (NASDAQ: AXON). In Q1, Baillie Gifford bought 2.5m shares here, increasing its holding by 50%.

If you don’t know Axon, it’s the maker of Taser guns and police body cameras. It also offers a range of state-of-the-art, AI-powered public safety solutions and drone technology.

In short, it’s the number one public safety company globally. And it’s growing at a rapid rate.

Prolific growth

Indeed, Axon’s last quarter (Q1) showed revenue of $807m, an increase of 34% year on year. Impressively, this was the ninth consecutive quarter of 30%+ growth.

Looking ahead, analysts expect revenue of $3.65bn for 2026. That would represent growth of 31% year on year.

Is Axon worth a closer look?

Is this growth stock worth a look today? I believe so – I’ve actually been buying it myself recently while it has been trading below $400 (around 50% below its highs).

In my view, demand for Axon’s solutions is likely to be high in the years ahead. Combine growing levels of unrest globally, reduced levels of police staffing, and higher demand for policing transparency, and the backdrop looks highly favourable, in my view.

It’s worth pointing out that this company has some really powerful technology. For example, its guardian solutions – which integrate into its body cameras – use AI to monitor situations for signs of escalation, malicious activity, or distress, acting as an extra layer of protection for police officers (and the public).

One other thing I like is that it has built a high-switching-cost ecosystem (a wide moat). By shifting from a simple hardware provider to a cloud software provider, Axon has essentially become the digital operating system for law enforcement (note that it has a retention rate of about 120%).

A lot of potential

Now, one downside to this stock is the valuation. Given its growth, it trades on a price-to-earnings (P/E) ratio near 50.

I’m comfortable with this earnings multiple as I expect the company to grow into it. But it does add risk – if growth slows down, the shares could underperform.

Taking a five-year view, however, I see a lot of potential. With the company expanding internationally (away from the US), it could see an even brighter future.

In my view, it’s worth considering as a growth play. Note that the average price target is $649 – almost 70% above the current share price.

Should you invest £5,000 in Axon Enterprise right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Axon Enterprise made the list?

Edward Sheldon has positions in Axon Enterprise, Amazon, and Scottish Mortgage Investment Trust.

The post After making a fortune on Tesla and SpaceX, Baillie Gifford is aggressively buying this growth stock that’s down 50% appeared first on The Twelfth Magpie.

Now, these stocks could keep rising; the near-term fundamentals do look strong. However, with many of these names up more than 100% this year, I’m wondering if it might be smarter to focus on some of the AI stocks that have been left for dead?

A cheap Mag 7 stock

One high-quality AI stock that’s suffered recently is Microsoft (NASDAQ: MSFT). This year, it’s actually down despite all the AI hype.

Why’s it fallen? Because it’s a software business and investors don’t want a bar of software right now.

I think there could be an opportunity to consider here while the stock’s under pressure. In my view, it’s far too early to write this company off. Recent earnings were strong. For the quarter ended 31 March, revenue was up 15% year on year at constant currency.

Notably, on the earnings call, the company said that its Copilot service now has 20m paid enterprise seats. This suggests its AI services are gaining traction.

It’s worth pointing out that Microsoft is the second largest cloud computing company in the world (it’s not just a software play). And it’s developing its own AI chips. So while there are risks around software disruption, I continue to see a lot of potential here, especially while the price-to-earnings (P/E) ratio is in the low 20s.

Consistent top-line growth

Another name that’s been lumped into the software basket is AXON Enterprise (NASDAQ: AXON). The maker of Taser guns, it’s a global leader in public safety.

This company – which is using AI heavily today – continues to grow at a rapid rate. For the first quarter of 2026, revenue was up 34% to $807m (its ninth consecutive quarter of 30%+ growth). On the back of this performance, the company raised its full-year guidance.

However, investors weren’t that excited because it’s not an AI infrastructure play.

With the stock down around 50% from its highs, I see an opportunity to consider here (I’ve been buying shares recently). A growth slowdown is a risk given the company’s high P/E ratio (40, using next year’s earnings forecast), however, taking a five-year view, I’m very bullish.

No AI slop here

Finally, Palantir‘s (NASDAQ: PLTR) another AI stock that could be worth checking out. I’ve been buying here too.

Last quarter, this company generated revenue growth of an unbelievable 85% as businesses in the US scrambled to adopt its AI solutions. However, investors didn’t care – because it’s a software company.

Is Anthropic a risk? Potentially. However, if you listen to the Q1 earnings call, the company repeatedly talks about how its Artificial Intelligence Platform (AIP) is superior to standard LLMs.

“AIP is the only platform that establishes a true AI no-slop zone, a necessary requisite to converting potential AI leverage into compounding real-world value without risking enterprise disaster.”

Palantir Chief Revenue Officer Ryan Taylor

Now, this stock’s expensive – the forward-looking P/E ratio using next year’s earnings forecast is 68. However, if the company keeps growing at a prolific rate, it’s only a matter of time until it looks cheap.

So I think it’s worth considering as a growth play.

The post While everyone’s piling into AI infrastructure stocks like Micron and SanDisk, consider these out-of-favour Nasdaq 100 names appeared first on The Twelfth Magpie.

However, the selling has become indiscriminate, with wheat getting tossed out with the chaff. The big opportunity for long-term investors then is to identify which companies will actually benefit from AI rather than be destroyed by it.

Here’s one S&P 500 stock that I think is now oversold on AI fears and worth considering.

Technology ecosystem

The share I want to highlight is law enforcement tech firm Axon Enterprise (NASDAQ:AXON). I stopped writing about this stock for a few months because last August it soared above $850 and looked extremely overpriced.

I actually took the opportunity to sell a few shares around then to manage risk. However, the stock has since crashed 59% to $350!

At this price, I’m much more bullish from a long-term perspective. Because while software now accounts for 43% of Axon’s total revenue, it’s part of an ecosystem that involves hardware (specifically Tasers and body cameras).

Nowadays, Axon rarely sells a taser or body camera as a one-time purchase. Roughly 90% of new bookings are multi-year subscription bundles where agencies also use Axon Evidence (its cloud storage platform that offers various software services).

More than 2.5bn evidence files have been loaded into Axon Evidence. And it’s growing continuously, with 60m+ hours of body-worn camera footage gathered from its latest two generations of body cameras. This gives it an enormous data advantage to create AI products.

For an agency to quit Axon’s software, it would have to abandon the hardware, retrain officers on new devices and software, and migrate huge amounts of sensitive legal evidence elsewhere.

A defensible ecosystem supercharged by AI

Will that happen? Personally, I don’t think so. In fact, I only see AI making Axon stronger. It’s already taken in nearly $1bn in bookings from new AI products.

CEO Rick Smith sees the company becoming “the provider of the world’s largest global sensor network, fully connected and supercharged by AI. We will power the most intelligent, connected safety devices globally“.

If this vision is realised (and management has a great track record of execution), Axon’s market-cap should be much higher than $31bn in 10 years’ time. Its future contracted bookings swelled to $14.4bn last year.

Meanwhile, the company’s total addressable market continues to expand. Management sees growth opportunities with government, prisons, retailers (think shoplifting epidemic), utility companies, healthcare providers, and more.

[Axon] is an interconnected ecosystem of hardware, software, and cloud services embedded in a heavily regulated industry through long-term government contracts. That’s not just a business model, it’s an ecosystem that grows even more valuable the deeper our customers go into it. Rather than being a target for disruption, we are the disruptor. 

CEO Rick Smith.

That said, the stock’s still not conventionally cheap, even after the massive pullback. So any unexpected slowdown in revenue could cause a further sell-off. Regulatory risk around AI use in police reports could also increase.   

Stepping back though, what we see here is that Axon’s underlying business is getting stronger while its share price is crashing. That’s the sort of disconnect that should interest long-term investors.

The post 1 top growth stock to consider buying after it crashed 59% appeared first on The Twelfth Magpie.

In 2026 however, the growth investor’s been picking through the software wreckage. The sector’s been hammered by fears that artificial intelligence (AI) will eat software. In the six months to February, the software and services sector delivered the worst underperformance versus the S&P 500 in 30 years!

However, Baillie Gifford US Growth Trust is convinced that “some babies have been thrown out with the bathwater“. So which beaten-down S&P 500 stock has it bought?

Enter Axon

In February, the trust took the opportunity to add Axon Enterprise (NASDAQ:AXON) to its portfolio. Since August, this stock’s crashed 52%.

Now, Axon isn’t exactly a household name. And with a $33bn market-cap, it’s not very large for the S&P 500 index.

For the record though, I’m very familiar with the company, having first bought shares a decade ago. And after rising roughly 2,100% in 10 years (even after the recent pullback), this position has long been among my largest holdings.

While its name might not be familiar to most, Axon’s products will be. It owns the Taser brand behind the bright yellow stun-guns that are synonymous with modern law enforcement. They’ve saved countless lives in the US by increasingly replacing bullets.

Meanwhile, Axon’s army of vehicle and body-worn cameras capture incredible amounts of video evidence, which is immediately sent to, stored. and analysed in its cloud platform. As such, Axon operates one of the world’s largest video/data repositories.

[Axon] combines devices, software and data into an integrated system that becomes hard to displace once adopted.

Baillie Gifford.

Data advantage

Rather than being threatened by AI, Axon’s using the technology to create cutting-edge software products. For example, Draft One uses body camera footage to automatically write initial police reports, saving individual officers huge amounts of time.

There’s growing public pressure to shift resources toward neighbourhood policing (tackle shoplifting, for example). Axon’s efficiency-boosting Draft One should play a role here, as its Workforce Mini body-cams are specifically for retail staff and security guards. They increase accountability, capture evidence, and potentially deter assaults.

Meanwhile, Axon’s Fusus platform allows local businesses to share their existing CCTV feeds. This allows police to see inside stores during an active crime.

In 2025, revenue rose 33% to $2.8bn, while bookings surged 46% to $7.4bn. Total future contracted bookings hit $14.4bn, providing significant revenue visibility for many years to come (contracts are often 10 years now).

After only one year, its suite of AI products attracted $750m in bookings in 2025. Crucially, this revenue’s defensible because upstart AI rivals can’t access Axon’s real-world data originating from vehicles, body-cams, drones, and more.

As AI increasingly commoditises software development, the companies with defensible positions are those that own the full stack, including hardware, and we do.

Axon CEO Rick Smith.

Now, the biggest risk here is a high valuation (55 times forward earnings). If growth slows faster than anticipated, the stock may crumble. Legislation in some US states could also slow AI adoption among police.

However, like Baillie Gifford, I think the 52% dip-buying opportunity is worth assessing closely.

The post After making a fortune on Tesla, this FTSE 250 trust has piled into a little-known S&P 500 stock appeared first on The Twelfth Magpie.

Are opportunities emerging for long-term investors? Absolutely. Here are two growth stocks down 40% or more that have a ton of potential.

The number one company in public safety

First up, we have Axon Enterprise (NASDAQ: AXON). The maker of Taser technology, it’s a global leader in public safety solutions.

This stock’s been a phenomenal long-term investment. Over the last 10 years, it’s risen more than 2,000%. Recently though, it’s come crashing down. Currently, it’s about 45% off its highs.

So I think it’s time to give it a closer look. I certainly am.

Axon’s recent Q4 2025 results showed why this company’s been such a good investment. For the year, revenue was up 33% year on year to $2.8bn, marking the fourth consecutive year of annual growth above 30%.

For 2026, the company expects revenue to grow 27%-30%, which would take its top line to around $3.6bn. Looking further out, it’s targeting revenue of $6bn by 2028.

What’s driving this growth? Well, right now, the company’s benefitting from a ‘perfect storm’ of factors – increasing levels of unrest globally, lower levels of police staffing, and more demand for policing transparency.

Looking ahead, the company has a huge opportunity in terms of global expansion. Today, the majority of its revenue comes from the US.

Now, the downside to this stock is that it’s still expensive, even after the 45% share price drop. The forward-looking price-to-earnings (P/E) is currently about 59 – this doesn’t leave any room for a slowdown in growth.

Taking a five-year view though (our preferred time horizon here at The Motley Fool), I’m pretty confident that the company will grow into its valuation and reward investors. So I think it’s worthy of further research today.

A play on the Great Wealth Transfer

The other stock I want to highlight is Robinhood Markets (NASDAQ: HOOD). It operates one of the most popular – and fastest-growing – investment and trading platforms in the world.

Back in October, its share price was above $150. Today however, it’s around $70. At that price, the forward-looking P/E using next year’s earnings forecast is only 24. I see value at that earnings multiple.

Like Axon, this company’s growing at breakneck speed. Last quarter, revenue was up 27% year on year to $1.3bn. One factor behind this growth is the company’s incredible level of innovation. Today, it offers commission-free stock trading, options trading, crypto, prediction markets, tokenised stocks, private markets, banking, social trading, and more.

In the long run, I see a ton of growth potential. Because Robinhood’s platform is immensely popular with younger investors, over the next few decades these investors are likely to inherit trillions from older generations.

Of course, a major meltdown in the financial markets could derail the growth story here. This could see people lose interest in investing.

Taking a five-year view though, I like the risk/reward set-up. I believe the stock’s worth a look.

The post These legendary growth stocks are down 40% or more. Time to consider buying? appeared first on The Twelfth Magpie.

However, when I look at the growth companies in my Stocks and Shares ISA, I’m very optimistic that they’re only going to become stronger from AI. Here are two shares that stand out.

King chipmaker

Let’s start with the stock most synonymous with the AI revolution: Nvidia (NASDAQ:NVDA). Since the launch of ChatGPT, the company has been catapulted higher to become the world’s largest by market cap.

Last year, the AI chip king reported revenue growth of 65% ($219bn), with net income of $120bn. For this year, Wall Street expects the top line to grow a further 68%.

This is staggering growth for a company already operating at such scale. That said, rising competition from AMD, Broadcom, and Amazon poses risks moving forward.

Can AI keep booming? Well, there will likely be more AI agents than human workers by 2035. And the number of AI robots — including cleaning robots and self-driving vehicles — is tipped to hit 4bn by 2050, according to Citigroup.

As CEO Jensen Huang just confirmed: “Computing demand is growing exponentially — the agentic AI inflection point has arrived.”

In other words, we’re more at the beginning of this revolution than the end. Nvidia’s products look set to stay at the very centre of it all.

The incredible sums the firm spends on R&D to stay on top is an underappreciated competitive advantage.

A wide-moat stock

Next we have Axon Enterprise (NASDAQ:AXON). The stock is down 39% since August, even after jumping 20% earlier this week.

Axon sells Tasers, body cameras, and software products to law enforcement agencies. In 2025, revenue leapt 33% to $2.8bn, marking the fourth consecutive year of growth above 30%. Annual bookings, which is the total value of all contracts signed during the year, surged 46% to $7.4bn.

The company is bundling cutting-edge AI products into a subscription package, and this is going down a treat with customers. In fact, the first AI product called Draft One, which automates large parts of the police report writing process through audio footage captured by body cameras, is the firm’s fastest-ever growing product.

Draft One is saving officers many hours per week, allowing them to focus on active policing instead of writing reports.

Another product is a voice-activated AI companion directly in Axon body cameras. This includes real-time translation across 50+ languages, allowing the police to easily interact with almost any member of the public.

Building AI products with real-world data from its own body cameras gives the company a powerful competitive edge.

My pick now

Which one is the most attractive right now? I would say Axon looks toppy, and could pull back sharply if growth decelerates in the coming quarters. This is the key risk.

In contrast, Nvidia stock’s trading at 29 times forward earnings. That’s cheaper than shares like Rolls-Royce, Walmart, and Nike. None of which is growing as quickly or as profitably.

Of these two then, I would say Nvidia is worth considering buying in March. It’s currently priced more like a value than a growth stock.

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