Scottish Mortgage manager Baillie Gifford is famous for making a ton of money from Tesla and Amazon stock. The investment firm got into these US growth stocks early on, and made a fortune as they shot up in price.
Today, the firm still has substantial positions in both of these names. However, what’s interesting is that recently, the firm has been offloading some of its shares in these companies and aggressively investing in another growth company.
The next big thing?
Earlier this week, I took a look at Baillie Gifford’s 13F filing. This is a US regulatory filing in which large investment managers that own US stocks list their holdings and the stocks they’ve been buying and selling in the previous quarter.
Now, during the fourth quarter of 2025, Baillie Gifford bought and sold a lot of stocks. However, one move jumped out at me and that was some heavy buying of AXON Enterprise (NASDAQ: AXON).
A leading public safety company, it’s the maker of Taser equipment. It also offers body-worn cameras, in-car cameras, and cloud-based digital evidence management software.
AXON stock has had a great run in recent years. However, recently, its share price has come down significantly as growth and momentum stocks have fallen out of favour.
Baillie Gifford clearly sensed a buying opportunity – during Q4 it snapped up 74,579 shares in the company. This increased its holding by 284% to 100,828 shares (worth around £43m today).
That’s a significant increase in position size. That said, at the end of the quarter, the stock still only represented 0.43% of its overall US stock portfolio.
An investment opportunity?
Is AXON stock worth considering for a Stocks and Shares ISA or SIPP today? I think so.
It’s not a stock I’d go ‘all in’ on. It’s a high-risk name that has a lofty valuation with a forward-looking price-to-earnings (P/E) ratio of 56 and has historically been volatile.
However, the company is growing at a phenomenal rate right now. Over the last five years, its revenue has jumped about 300%.
And looking ahead, I expect its solutions to remain in high demand. Combine increasing levels of unrest globally (which could be exacerbated by AI-related job losses), lower levels of police staffing, and more demand for policing transparency, and the backdrop looks pretty favourable, in my view.
Note that revenue for 2026 is projected to grow 26% on 2025 levels. That’s a high level of growth.
Of course, this top-line growth isn’t guaranteed. And if it’s lower than anticipated, the share price could head down given the elevated valuation.
Taking a five-year view, however (our preferred investment horizon here at The Motley Fool), I think this growth stock will do well. I’m very tempted to buy it myself – I may pull the trigger in the next few weeks.
