Having Loser AI Stocks Like Ouster Inc. (OUST) In Your Portfolio is … Good?

5 days ago 7

Brad Faye

Tue, November 25, 2025 astatine 8:36 AM CST 7 min read

Recently respective speculative, smaller-cap companies successful Eric’s portfolio specified arsenic Power Solutions, experienced sharp, often exaggerated sell-offs aft earnings.
Eric emphasizes that these positions are intentionally tiny parts of a broader portfolio designed for semipermanent exposure.
Eric and Austin some judge that if you aren’t seeing losers successful your portfolio, it could beryllium a motion that you’re playing things excessively conservatively and not taking capable large swings.
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Can having losers successful your AI portfolio beryllium a bully thing? Two of our 24/7 Wall St. Analysts judge it is.

During a caller treatment connected The AI Investor Podcast, Eric Bleeker and Austin Smith talked astir respective stocks that performed poorly aft earnings, highlighting that not each presumption successful a portfolio volition beryllium a winner. Austin specifically noted that Power Solutions suffered a ample drop, prompting Eric to explicate the melodramatic intraday swings the banal experienced.

Eric explains that galore caller recommendations successful the portfolio look anemic due to the fact that they were intentionally smaller, high-risk positions aimed astatine capturing semipermanent opportunities. These smaller companies, specified arsenic Applied Optoelectronics and Power Solutions, thin to endure exaggerated sell-offs during periods of indiscriminate marketplace pessimism. Eric emphasizes that the underlying thesis for galore of these companies person not fundamentally changed; rather, the marketplace is presently punishing speculative names broadly.

"We've started retired with immoderate of these areas that I spot having large stories successful 2026," Eric explains. "And I've been going for smaller, speculative plays to get immoderate leverage connected them. If you're coming to the portfolio and buying lone the astir caller stuff, you're not going to get the wide vulnerability crossed ideas."

Eric besides notes that lower-quality absorption teams tin worsen these declines done unclear guidance oregon mediocre communication. Despite this, however, Eric believes immoderate companies, similar Ouster, inactive person beardown semipermanent prospects adjacent if they are caught successful unfavorable marketplace narratives.

Austin reinforces the thought that volatility affects some gains and losses, and nary portfolio tin oregon should person lone winners. Eric agrees and adds by that having immoderate losing positions is essential, due to the fact that a portfolio without losers indicates that an capitalist avoided taking the indispensable risks to seizure large aboriginal opportunities, particularly successful areas similar AI.