We recently released an article called Multimillionaire Nicholas J. Pritzker's 8 Stocks Showing Significant Growth Prospects In this piece, we will assess how Ouster, Inc. (NASDAQ:OUST) measures up against Nicholas J. Pritzker's other stock choices known for significant growth prospects.
Nicholas J. Pritzker serves as the chairman and co-founder of Tao Capital Partners Based in San Francisco, this venture capital firm was founded in 2013. Nicholas Pritzker, an esteemed American businessman and part of the notable Pritzker clan, is celebrated for his sharp business skills and leadership across various enterprises linked to his family and personal projects. Earlier in his career, he held positions such as Chairman and CEO at the Hyatt Development Corporation. Known also through his connections with major holdings like those managed by the Pritzkers—such as shares in Hyatt Hotels and Conwood, a top producer in smokeless tobacco—he has built a robust professional portfolio. In terms of education, Pritzker attended several institutions: Reed College, Lake Forest College, and the London School of Economics before completing his Juris Doctor degree at the University of Chicago.
At Tao Capital Partners, Pritzker leads a company that concentrates on strategic investments across various sectors including technology, transportation, healthcare, education, sustainable foods, renewable energy, agriculture, consumer goods, real estate, and hospitality. While serving as chairman, Nicholas Pritzker does not manage the firm’s portfolio; this task falls to Matthias Brachtel, who handles the management of the firm’s investment portfolio and makes crucial financial choices. Guided by their direction, Tao Capital has gained recognition for supporting pioneering and eco-friendly projects, prioritizing both significant long-term benefits and monetary gains.
Tao Capital Partners adheres to a meticulous investment strategy, concentrating on areas primed for expansion and change. Their portfolio encompasses firms from the technology and transport sectors, alongside businesses dedicated to healthcare, education, eco-friendly foods, and renewable energy initiatives. By adopting this varied method, the company demonstrates its dedication to securing economic success along with promoting progress in key worldwide domains.
By the end of Q4 2024, Tao Capital Partners stated they were overseeing $143.28 million in 13F securities spread across their main ten investments. Their dedication to responsible and effective investing matches Nicholas Pritzker’s overarching aim to use financial resources for beneficial societal impact. Under his leadership, the company’s strategy remains focused on achieving long-term goals. Meanwhile, Matthias Brachtel uses his adept skills in portfolio management to maximize earnings potential within these selected areas. By blending creative strategies with solid fiscal oversight, Tao Capital Partners keeps expanding an assorted collection of assets designed to promote enduring prosperity.
Our Methodology
To compile this report, we examined Tao Capital’s Q4 2024 13F disclosures to pinpoint the equity selections made by billionaire Nicholas J. Pritzker that showed significant growth prospects. Our analysis focused on those securities offering an upward potential exceeding 2%, highlighting what set these particular choices apart as promising investment opportunities. These stocks were then organized according to their increasing likelihood for appreciation. Additionally, to provide further insight, we included insights into how various hedge funds viewed each security, drawing upon information gathered from 1,009 different firms monitored by Insider Monkey during the final quarter of 2024.
Why do we focus on the stocks that hedge funds amass? It’s straightforward: our analysis indicates that mimicking the leading stock choices from premier hedge funds allows us to surpass the broader market performance. Each quarter, our quarterly newsletter’s approach chooses 14 small-cap and large-cap equities and has achieved a return of 363.5% starting from May 2014, exceeding its benchmark by 208 percentage points. see more details here ).
A team of self-guided robotic machines traversing an environment using the firm's 3D imaging tech.
Ouster, Inc. (NASDAQ: OUST )
Number of Hedge Fund Holders for Quarter 4: 15
Tao Capital’s Share of Equities: $13.75 Million
Upside Potential as of May 8: 65.70%
Ouster, Inc. (NASDAQ:OUST), an advanced American lidar tech firm located in San Francisco, California, specializes in developing and producing high-resolution, digital 3D lidar sensors. These sensors find application across various sectors such as self-driving cars, industrial automation, robotics, unmanned aerial vehicles, mapping solutions, defense initiatives, and surveillance systems. The company distinguishes itself with its forward-thinking methodology aimed at providing affordable yet highly efficient sensors tailored for fast-growing industries.
During the final quarter of 2024, Ouster, Inc. (NASDAQ:OUST) announced strong financial performance fueled by heightened demand for their lidar technology. For this particular quarter, revenues climbed to $30 million—a 23% jump from last year and a 7% boost sequentially. Over 4,800 sensors were dispatched throughout these months, illustrating ongoing expansion and effective entry into new markets. One notable achievement was the significant enhancement in gross profit margin, reaching an impressive 44%, as measured under both GAAP and non-GAAP standards; notably up from just 22% recorded in Q4 of 2023 and surpassing the prior quarter’s figure of 38%. This uptick in profitability highlights advancements made towards reducing costs and boosting operational efficiencies within the firm.
Even though these encouraging advancements took place, Ouster, Inc. (NASDAQ:OUST) still recorded a quarterly net loss of $24 million. Nonetheless, this amount shows considerable enhancement when contrasted with the $39 million deficit seen in Q4 2023 and the $26 million shortfall noted in Q3 2024. For the complete fiscal year, the firm exhibited notable advancement as well; revenues surged by 33% year over year to reach $111 million, and deliveries surpassed 17,300 sensors. The annual GAAP gross margin stood at 36%, marking an impressive increase from just 10% in FY 2023, whereas the non-GAAP gross margin rose from 30% to 41%. Additionally, Ouster saw their yearly net losses plummet dramatically from $374 million in 2023 down to $97 million in 2024, signaling a more robust financial stance.
Moving forward, Ouster, Inc. (NASDAQ:OUST) expects its revenues for the first quarter of 2025 to land between $30 million and $32 million, indicating ongoing growth. The firm concluded 2024 in solid financial health, boasting $175 million in cash, cash equivalents, restricted cash, and short-term investments.
Overall OUST ranks 1st Among billionaire Nicholas J. Pritzker’s selected stocks with significant growth prospects, we recognize the potential of OUST as an investment. However, our confidence leans towards AI stocks offering better opportunities for substantial returns over a shorter period. One such AI stock has surged since early 2025, whereas many well-known AI equities have declined by approximately 25%. Should you seek an alternative AI stock to OUST that promises greater success yet trades below five times its earnings, review our detailed analysis available in our latest report. cheapest AI stock .
READ NEXT: 20 Top AI Stocks to Purchase Currently and 30 Top Stocks to Purchase Currently as Recommended by Millionaires
Disclosure: There are none. This piece was initially published here. Insider Monkey .
0 Comments