Sands Capital, an investment management company, released its “Sands Capital Global Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies worldwide. Global equities surged in the quarter, although leadership remains concentrated. In this environment, the strategy returned -2.0% compared to 7.6% for the MSCI ACWI. You can check the fund’s top 5 holdings to know more about its best picks for 2025.
In its third-quarter 2025 investor letter, Sands Capital Global Growth Fund highlighted stocks such as Axon Enterprise, Inc. (NASDAQ:AXON). Axon Enterprise, Inc. (NASDAQ:AXON) manufactures conducted energy devices (CEDs) under the TASER brand. The one-month return for Axon Enterprise, Inc. (NASDAQ:AXON) was 4.51%, and its shares lost 9.00% over the last 52 weeks. On December 16, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $555.06 per share, with a market capitalization of $43.8 billion.
Sands Capital Global Growth Fund stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its third quarter 2025 investor letter:
“Axon Enterprise, Inc. (NASDAQ:AXON) is a leading provider of public-safety technology, including body cameras, software, and the TASER electroshock device. Shares declined during the period, but the move appeared more technical than fundamental. After a strong run earlier in the year, investors likely took profits, prompting a modest rotation out of the name. Business performance remained strong. In August, Axon reported second quarter results with revenue of $669 million, up 33 percent year over year and ahead of expectations. Software and Services drove growth, with annual recurring revenue rising 18 percent to $1.18 billion. Gross margin expanded to 63.3 percent, and adjusted EBITDA margin improved to 25.7 percent. Net revenue retention held at 124 percent, and future contracted revenue grew to $10.7 billion. Axon continues to strengthen its AI leadership. The recent acquisition of Prepared, an AI-powered platform for 911 call centers, enhances real-time operations and broadens Axon’s role across public safety workflows. Management reaffirmed guidance, underscoring durable momentum.”
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the third quarter, which was 62 in the previous quarter. In the third quarter, Axon Enterprise, Inc. (NASDAQ:AXON) generated $711 million in revenue, representing a 31% increase year-over-year. While we acknowledge the potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
