Apr. 20 at 4:54 PM
$OUST BULLISH:
$AMZN has 3.2 million warrants priced at
$50/share (02/2030 expiry).
Ouster reports this spending in their quarterly earnings as CONTRA-REVENUE.
Because these warrants are effectively "rebates" for Amazon, Ouster has to subtract the value of the warrants from their total revenue.
If you look at Ouster's financial statements, you will see a line item for "PROVISION FOR COMMON STOCK WARRANTS." When that number is high, it tells us Amazon is spending heavily and unlocking more of those 3.2 million shares.
Most people just see "Amazon owns OUST" and think it's a simple investment. But by reading the TRANSACTION AGREEMENT, we know the truth: Amazon is a "pay-to-play" partner.
If Amazon stops buying Ouster sensors for their warehouses or Zoox cars, they lose the right to those remaining shares.
For Amazon to spend
$100 million, the tech has to work. You don't spend nine figures on sensors that don't solve your problems just to get a stock "coupon."
