Axon's 0.97% Drop on $270M Volume Pushes It to 417th in U.S. Liquidity Ranking

On October 7, 2025, Axon Enterprise (AXON) closed at a 0.97% decline with $270 million in trading volume, ranking 417th among U.S.-listed stocks by liquidity. The underperformance followed mixed signals from product development updates and regulatory developments in key markets.

Recent filings highlighted delays in the certification process for Axon's next-generation body-worn camera system, pushing expected market deployment to early 2026. While the company emphasized enhanced data encryption features, analysts noted the postponement could disrupt quarterly revenue forecasts for 2025. Simultaneously, a pending antitrust investigation in California raised concerns about potential restrictions on Axon's cloud data storage solutions, which contribute 23% of its current revenue stream.

Strategic shifts within the law enforcement segment also drew investor attention. Axon announced a partnership with a European cybersecurity firm to co-develop AI-powered threat detection software, though details about cost-sharing arrangements and implementation timelines remain undisclosed. The collaboration follows three consecutive quarters of flat contract renewals in North America, where competition from smaller regional providers has intensified.

To carry out this back-test rigorously I need to pin down a few practical details. Could you confirm / choose the following so I can set it up correctly? 1. Market universe • All U.S. listed common stocks (NYSE + NASDAQ) – OK? • Exclude ETFs / ADRs / penny stocks (price < $1) – OK? 2. Ranking logic • Rank by $ notional traded (price × shares) or by share volume? • Use yesterday’s (t-1) data to form today’s portfolio (so you can trade at today’s open), then exit at today’s close – is that the 1-day holding period you want? 3. Portfolio construction • Equal-weight across the 500 names each day; any cap on single-name weight if fewer than 500 pass the filters? 4. Transaction costs & slippage • Default assumption is zero unless you specify (e.g. 2 bps each side). 5. Benchmark (optional) • Compare to S&P 500 Total Return? Once I have these points I can retrieve the historical daily volume data, generate the daily trade lists, and run the back-test for 2022-01-01 through today.