Ferguson protests send Taser stock up 30%

August 19, 2014: 9:46 AM ET
Why Taser stock has surged after Ferguson





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Video police reports: It's not just the cameras that are exciting traders. Taser's service includes software that could make it easy for officers to upload audio and visual evidence. In the future, these videos could replace police reports.

Taser could also benefit from strong demand for its flagship electroshock products, commonly known as taser guns. As municipality budget constraints begin to ease as the economy improves, police departments are more likely to stock up on the devices, according to analysts at Dougherty and Company who cover the company.

Taser guns still make up the bulk of Taser's business.

taser stock chart tuesday

Despite the recent uptick, Taser's stock is still down over 5% for the year.

Brian Ruttenbur, an analyst at CRT Capital Group, warns that even if the wearable camera movement takes off, there will be fierce competition in the space. What makes Taser unique right now is that the company has a partnership with Amazon (AMZN, Tech30), the only company providing private cloud solutions at present.

Google (GOOG), IBM (IBM, Tech30), Microsoft, (MSFT, Tech30) and Cisco (CSCO, Tech30) are all creating their own private cloud solutions. Once they do, more companies will create camera hardware and link up with them.

Related: Twitter co-founder Jack Dorsey live-tweets protests in Ferguson

Google, for instance, already has its Google Glass device. "There are multiple companies that can provide an even more robust solution," Ruttenbur said.

Furthermore, Ruttenbur argues that police departments are notoriously slow at implementing any sort of new technology.

"Taser wants to replace Taser guns every five years, but police officers keep their weapons for 15, even 20 years," he says.

Then there's the police unions, which hold a lot of sway and have vigorously opposed the cameras. "You talk to any police officer on the street, they do not want video on their bodies," Ruttenbur said.

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