Outset Medical, Inc. (NASDAQ: OM) Stock Plummets 18%: A Painful Week for Investors

OM STOCK DROPS 18% IN A WEEK!

Listen up, folks! This week has been a brutal one for investors in Outset Medical, Inc. (NASDAQ: OM). The stock has taken a nosedive, plummeting 18% in just seven days. And it's not just individual investors feeling the pain—even the big institutions are hurting. So, what's going on here? Let's break it down!

EARNINGS DISASTER!

First off, let's talk earnings. Outset Medical just reported its second-quarter results, and they're a disaster. The company posted an adjusted EPS of -$0.47, which is worse than the -$0.43 per share that Wall Street was expecting. And revenue? A measly $27.39 million, way below the $31.37 million analysts were hoping for. That's a year-over-year drop from $36.04 million, folks. OUCH!

GUIDANCE CUT!

But wait, there's more! Outset Medical also slashed its guidance for 2024. The company now expects revenue to come in at around $110 million, down from the previous forecast of $145 million to $153 million. Wall Street was expecting $146.41 million, so this is a massive miss. The market hates uncertainty, and this guidance cut is a big red flag.

ANALYSTS AREN'T HAPPY!

Let's look at what the analysts are saying. As of April 2025, Outset Medical has received 10 Buy Ratings, 2 Hold Ratings, and 0 Sell Ratings. But don't let that fool you—the average analyst price target is $19.50, which is a 103.55% upside from the last price of $9.58. That's a lot of upside, but it's also a lot of risk.

HISTORICAL TRENDS AND INDUSTRY BENCHMARKS

Now, let's compare this to historical trends and industry benchmarks. Outset Medical has been improving its gross margins over the past three years, but new console placements have been a challenge. The number of treatments performed each month on Tablo has continued at record levels, with high utilization rates. But the company's revenue has been volatile, with a significant drop in the second quarter of 2024 compared to the same period the previous year.

WHAT'S NEXT FOR OM STOCK?

So, what's next for OM stock? Things aren't looking good, folks. The company's earnings report and guidance cut have spooked investors, and the stock is down 33.5% as of Thursday morning. The market is punishing Outset Medical for its missed earnings and revenue guidance, and it's not showing any signs of letting up.

DO YOU OWN OM STOCK? HERE'S WHAT TO DO!

If you own OM stock, you need to decide whether to hold on or cut your losses. The company's earnings report and guidance cut are a big red flag, and the stock is showing no signs of recovery. But if you believe in the company's long-term prospects, you might want to hold on and see if it can turn things around.

STAY AWAY FROM OM STOCK!

But if you don't own OM stock, STAY AWAY! This is a risky play, and the market is punishing the company for its missed earnings and revenue guidance. There are plenty of other opportunities out there, so don't throw your money away on a stock that's showing no signs of recovery.

BOO-YAH! THIS STOCK'S A WINNER!

But don't worry, folks—there are plenty of other winners out there. Keep your eyes peeled for the next big thing, and don't be afraid to take risks. The market is always changing, and there are always new opportunities to make money. So, stay tuned, and let's make some money together!