Why Ouster (OUST) Stock Is Soaring On Its 'Physical AI' Strategy And Q2 Results

Ouster Inc OUST stock is surging Friday afternoon after the lidar technology company reported impressive financial results for the second quarter, beating analyst estimates on both revenue and earnings.

What To Know: The company announced quarterly revenue of $35.05 million, a significant 30% increase year-over-year and comfortably above the consensus estimate of $33.77 million. The reported loss of 38 cents per share was also narrower than the anticipated loss of 55 cents per share.

The strong performance was driven by record shipments of 5,500 sensors, with high demand from customers in the industrial and automotive sectors for applications like warehouse automation and robotaxis.

Ouster also demonstrated improved profitability, with its non-GAAP gross margin expanding to 52%, a substantial increase of 1200 basis points over the prior year.

CEO Angus Pacala stated the company achieved results above the high end of guidance, attributing the success to their strategy of “bringing Physical AI to life” and seeing customers move from prototype testing to commercial production. The company ended the quarter with a solid cash position of $229 million.

Looking ahead, Ouster issued third-quarter revenue guidance in the range of $35 million to $38 million. The midpoint of this forecast aligns with analyst estimates of $37.73 million, reinforcing investor confidence in the company’s continued growth trajectory.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Ouster displays exceptional momentum but a less attractive valuation profile. The stock scores an extremely high 96.74 out of 100 for Momentum, indicating very strong recent price performance and a powerful upward trend compared to its peers.

This aligns with the stock’s recent surge following its positive earnings report. Conversely, its Value score is a below-average 46.23, suggesting that based on fundamental metrics, the stock is not considered undervalued and may be trading at a full or premium price.

Price Action: According to data from Benzinga Pro, OUST shares are trading higher by 15.2% to $27.19 Friday afternoon. The stock has a 52-week high of $32.95 and a 52-week low of $6.34.

Read Also: Palantir Technologies Stock Hits A New All-Time High: What’s Going On?

How To Buy OUST Stock

By now you're likely curious about how to participate in the market for Ouster – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Ouster, which is trading at $27.67 as of publishing time, $100 would buy you 3.61 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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