Shares of Ouster Inc. (OUST) plummeted 13.19% in Tuesday's trading session following the release of its third-quarter earnings report. The sharp decline came as the company reported a disappointing Basic Earnings Per Share (EPS) of USD -0.37, falling short of market expectations.

Prior to the earnings announcement, options activity had suggested that traders were anticipating a significant move in Ouster's share price. Market data indicated that options volume was normal, with calls leading puts 2:1, and implied volatility suggested a potential 14.5% swing in either direction post-earnings. The actual stock movement closely aligned with these predictions, albeit to the downside.

The negative earnings report appears to have spooked investors, leading to the substantial sell-off. As a technology company specializing in high-resolution digital lidar sensors, Ouster's performance is closely watched by market participants as an indicator of the broader autonomous vehicle and robotics sectors. The company's struggle to achieve profitability, as evidenced by the negative EPS, raises concerns about its growth trajectory and ability to capitalize on the expanding market for lidar technology.