Billionaire Nicholas J. Pritzker’s 8 Stocks with Huge Upside Potential

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1. Ouster, Inc. (NASDAQ:OUST)

Number of Hedge Fund Holders as of Q4: 15

Tao Capital’s Equity Stake: $13.75 Million

Upside Potential as of May 8: 65.70%

Ouster, Inc. (NASDAQ:OUST) is a cutting-edge American lidar technology company based in San Francisco, California. The company designs and manufactures high-resolution, digital 3D lidar sensors that are utilized across a diverse range of applications, including autonomous vehicles, industrial automation, robotics, drones, mapping, defense, and security systems. Ouster’s innovative approach to lidar technology focuses on delivering cost-effective, high-performance sensors that meet the demands of rapidly evolving markets.

In the fourth quarter of 2024, Ouster, Inc. (NASDAQ:OUST) reported robust financial results, driven by increased demand for its lidar solutions. Revenue for the quarter reached $30 million, representing a year-over-year increase of 23% and a sequential rise of 7%. The company shipped more than 4,800 sensors during this period, reflecting consistent growth and successful market penetration. A key highlight of the quarter was the substantial improvement in gross margin, which stood at 44% on both a GAAP and non-GAAP basis, compared to 22% in Q4 2023 and 38% in the previous quarter. The higher margins underscore the company’s progress in cost optimization and efficiency gains.

Despite these positive developments, Ouster, Inc. (NASDAQ:OUST) posted a net loss of $24 million for the quarter. However, this figure marks a significant improvement compared to the $39 million loss reported in Q4 2023 and the $26 million loss from Q3 2024. The company’s full-year financial performance also demonstrated substantial progress, with revenue climbing 33% year-over-year to $111 million and shipments exceeding 17,300 sensors. The GAAP gross margin for the entire year was 36%, a remarkable jump from 10% in fiscal year 2023, while the non-GAAP gross margin improved from 30% to 41%. Ouster’s net loss for the year decreased substantially from $374 million in 2023 to $97 million in 2024, indicating a stronger financial position.

Looking ahead, Ouster, Inc. (NASDAQ:OUST) anticipates revenue for Q1 2025 to fall within the range of $30 million to $32 million, signaling steady growth momentum. The company ended 2024 with a strong liquidity position, holding $175 million in cash, cash equivalents, restricted cash, and short-term investments.

Overall, OUST ranks first among billionaire Nicholas J. Pritzker’s 8 stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OUST but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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