BigBear.ai Stock Volatility: Meme Stock Momentum and AI Industry Speculation

Why BigBear.ai Stock Is Sinking Today | The Motley Fool

BigBear.ai (BBAI -10.06%) stock is falling in Tuesday's trading. The company's share price was down 8.7% as of 11:15 a.m. ET and had been off as much as 13.4% earlier in the daily session. On the heels of an explosive run, BigBear.ai stock is losing ground today following recent filings with the Securities and Exchange Commission (SEC) showing that a company insider and large institutional investor both planned to sell shares. Even with today's pullback, the software specialist's share price is up 90% over the last month. In a filing submitted to the SEC yesterday, BigBear.ai reported that board member Mandy Long planned to sell a significant amount of company stock. Per the filing, Long intended to sell 200,000 shares -- and yesterday was listed as her approximate date of sale. BigBear.ai also submitted a filing showing that BBAI Ultimate Holdings intended to sell a large amount of company stock yesterday. BBAI Ultimate Holdings owns more than 10% of the company, and is required to disclose purchases and sales of stock because of the size of its stake. BBAI Ultimate Holdings is a division within AE Industrial Partners, which is by far BigBear.ai's largest shareholder. Per the filing, BBAI Ultimate Holdings planned to sell more than 9 million shares of company stock yesterday. BigBear.ai stock has enjoyed an explosive rally, as some investors have bet that the company could solidify itself as one of the next big winners in the artificial intelligence (AI) revolution. Recent suggestions that the stock could be capable of delivering returns comparable to those of red-hot software leader Palantir Technologies helped kick-start a recent rally, and the bullish momentum was compounded as BigBear.ai began to attract more attention from meme stock investors. However, BigBear could face some significant downside pressures in the near term. BBAI Ultimate Holdings and AE Industrial Partners have frequently sold shares amid the stock's recent rally, and there's significant risk that selling will continue in the near term. With the company's largest shareholder unloading shares on the heels of a rally that appears to be unconnected from fundamental business news, BigBear.ai stock looks risky right now.

Why BigBear.ai Stock Is Skyrocketing Today | The Motley Fool

BigBear.ai stock opened today's trading with explosive gains powered by another round of strong, meme stock-driven momentum. The big gains for the stock lately could be creating a moderate short-squeeze dynamic. The company's share price is now up 120% over the last month. Meme stock trades have come roaring back into fashion lately, and BigBear.ai has emerged as a hot pick for investors seeking volatile stocks with the potential to post explosive gains. Last week, The Economic Times published an article looking at whether BigBear could be on track to deliver returns comparable to artificial intelligence (AI) software leaders. BigBear.ai's bullish momentum was then strengthened by news that Palantir Technologies had scored new defense industry partnerships and contracts. Adding another positive valuation catalyst for the stock, President-elect Trump announced last week that he plans to appoint venture capitalist David Sacks as AI and cryptocurrency czar in his new administration. The appointment news was interpreted by investors as a sign that the incoming Trump administration will take steps to promote growth for the artificial intelligence industry and help create new opportunities for companies in the space. As BigBear.ai has rocketed higher, investors who placed bets against the stock through short-selling may now be covering their bets in order to minimize their losses. Buying back shares that had been lent through short sales could be having the effect of pushing shares even higher. In turn, remaining short-sellers have even greater incentives to cover their shorts -- and resulting gains could be making BigBear.ai stock even more visible and appealing to meme stock traders. BigBear.ai stock has recorded massive gains over the last month on relatively little material news for the business. Recent disclosures of stock sales from institutional investors and insiders with the Securities and Exchange Commission (SEC) could be raising questions about how long the company's recent rally can continue. As of the company's last comprehensive ownership disclosure in April, investment firm AE Industrial Partners owned 57.7% of the company's common stock. Meanwhile, BBAI Ultimate Holdings is a smaller unit within AE Industrial Partners that holds some of the parent company's stake in BigBear.ai. As the stock has rocketed higher over the last two months, BBAI Ultimate Holdings has been sells large amounts of shares. Along with the massive run-up for BigBear.ai stock, the wave of selling from a large institutional stakeholder suggests that investors may want to be cautious with the stock right now.

Why BigBear.ai Stock Is Skyrocketing Again Today | The Motley Fool

Why is Palantir-related news sending BigBear.ai stock higher again? BigBear.ai (BBAI 20.63%) stock is seeing another day of huge gains in Friday's trading. The company's share price was up 20% as of 12:15 p.m. ET and had been up as much as 26.9% earlier in the daily session. While there does not appear to be any direct, business-specific news that's pushing BigBear.ai stock higher today, the company's share price may is climbing in conjunction with the news that Palantir Technologies (PLTR 6.04%) has formed a new partnership with Booz Allen Hamilton to accelerate U.S. defense technologies. BigBear has a partnership with Palantir, and a narrative connection has recently emerged between the two stocks that has helped push the latter company's valuation higher. Palantir and Booz Allen Hamilton published a joint press release today announcing that they were teaming up to promote U.S. defense mission innovation. Palantir stock is up 6% as of this writing on the news. BigBear.ai and Palantir had previously announced a partnership to advance machine learning technologies and integrate some of the two company's respective capabilities to "extend the operating system for the modern enterprise with data and AI that provide advice and other actionable insights for complex business decisions." While it's possible that contract wins for Palantir will wind up having significant carryover benefits for BigBear, that won't be true in every case. BigBear.ai stock has gotten a boost this week after The Economic Times published a report raising the possibility that the company's stock could see performance gains comparable to the incredible run that Palantir stock has enjoyed this year. As of this writing, Palantir stock is up roughly 343% across 2024's trading. But BigBear.ai investors may want to pump the brakes a bit. The company's share price appears to be making big moves on meme stock momentum, as well as expectations that the stock could be "the next Palantir." While it's possible that BigBear will serve up some big business wins that help push its valuation above current levels, recent gains for the stock appear to be disconnected from fundamental business performance and outlook conditions. If you're thinking about buying BigBear, you should approach the stock with the understanding that it's a high-risk investment.

Why BigBear.ai Stock Skyrocketed This Week | The Motley Fool

BigBear.ai gained ground this week following a report from The Economic Times detailing reports suggesting that the company could become the next Palantir in terms of stock returns. The company's share price also climbed following news that President-Elect Trump plans to appoint venture capitalist David Sacks as his administration's artificial intelligence (AI) and cryptocurrency czar. On Dec. 2, The Economic Times published an article that looked at recent reports on BigBear.ai stock and raised the possibility that the software specialist could deliver Palantir-like returns. For reference, Palantir stock is up roughly 345% across 2024's trading. Meanwhile, BigBear.ai's share price is up 58% across that stretch. On the heels of the comparison, Palantir announced new partnerships that created bullish ripple effects for valuations in the AI software industry. Palantir is partnering with Booz Allen Hamilton to use AI and other technologies to accelerate innovations in the defense industry. The company is also partnering with Shield AI for the development of autonomous, unmanned vehicles for defense purposes. Palantir's new defense deals helped spur more gains for BigBear.ai stock, with some investors betting that the smaller software player could soon land more contracts in the space. The two companies do have an existing partnership that integrates their respective software offerings to improve data collection and analytics insights. In addition to big gains from Palantir-related stories, BigBear.ai stock also got a lift from Trump's announcement that he plans to appoint Sacks as AI and cryptocurrency czar. The move was broadly interpreted as a signal that the new Trump administration will take a proactive approach to promoting the advancement of the AI industry. But while the past week saw bullish catalysts for BigBear.ai stock on multiple fronts, the big gains have also pushed the company's risk profile higher. Notably, the software specialist saw an explosive valuation surge over the past week despite little in the way of news that appears to be materially meaningful for the business. With the business still posting losses and now valued at roughly five times this year's expected sales, the stock looks risky on the heels of its big rally.

Why BigBear.ai Stock Roared Higher Tuesday Morning | The Motley Fool

The catalyst that sent the artificial intelligence (AI) specialist higher was some bullish commentary in an international publication that compared it favorably to data mining and AI specialist Palantir Technologies (PLTR 5.22%). BigBear.ai has the potential to become the next Palantir, according to The Economic Times. Since the company is much smaller and has a much lower market cap, it has the potential to be a big winner for investors, according to the report. Indeed, with a value of just $668 million, BigBear is much smaller than Palantir at $159 billion (as of this writing). BigBear.ai has gotten a lot of attention since the advent of generative AI early last year. The company supplies decision-intelligence solutions enhanced by AI and machine learning to help business leaders make informed decisions. If that sounds a lot like what Palantir does, there are similarities. As my colleague Dan Victor pointed out, "Both specialize in AI and machine learning cloud-based software that helps organizations analyze complex data sets to gain predictive insights." He also cites an "ongoing strategic partnership" with Palantir that could benefit BigBear.ai. Palantir's Artificial Intelligence Platform (AIP) is gaining broad acceptance across enterprise and government customers, noted for its ability to provide a wide range of solutions to everyday business problems. For its part, BigBear.ai is still focused on smaller, more specialized solutions, limiting its current upside. To be clear, a lot of things would have to go right for BigBear to make the jump to the big leagues. In the third quarter, the company generated revenue that increased 22% to $41.5 million, resulting in a loss per share of $0.05. Compare that to Palantir's revenue of $726 million and earnings per share of $0.06, and the most obvious difference comes into focus. However, at roughly 3 times forward sales, BigBear is by far the better bargain, compared to 46 times forward sales for Palantir. That said, its smaller size and lack of profits make BigBear.ai a more risky proposition, so any investment should be sized appropriately.

Could BigBear.ai Become the Next Palantir Technologies? | The Motley Fool

Palantir Technologies is delivering a banner year for shareholders driven by exceptional growth and accelerating profitability. At the time of this writing, the stock has returned 285% year to date, amid market optimism that this artificial intelligence (AI) innovator is still in the early stages of a global expansion opportunity. There's a lot to like about Palantir, but investors may also want to take a look at other industry players following a similar path of disruptive innovation. BigBear.ai (BBAI -3.93%) is one such tech sector small-cap developing several AI applications with enormous potential. Could BigBear.ai be the next Palantir? Here's what you need to know. With its $550 million market capitalization, BigBear.ai is tiny next to Palantir, which has grown to a $150 billion equity value. Despite this substantial size difference, the two companies have some similarities. Both specialize in AI and machine learning cloud-based software that helps organizations analyze complex data sets to gain predictive insights. BigBear.ai and Palantir even have an ongoing strategic partnership to incorporate each other's capabilities. Features such as generative AI and workflow automation are proving to be a game-changer for productivity, capturing strong demand from businesses across all corners of the economy. On this point, Palantir has been more successful thus far with comprehensive end-to-end solutions, while BigBear.ai is only just building traction by targeting niche markets with specialized offerings. A major theme for Palantir has been its ability to expand beyond a historical government and defense sector focus toward commercial applications. Indeed, in its last reported third quarter (for the period ended Sept. 30), Palantir's revenue soared by 30% year over year driven precisely by large enterprise customers adopting the company's Artificial Intelligence Platform (AIP). The top-line momentum has translated into sharply higher earnings, with the trends expected to continue into 2025 and beyond. On the other hand, BigBear.ai is still missing that breakout moment with the bulk of its business driven by a handful of large Department of Defense contracts. In the company's third quarter (for the period ended Sept. 30), BigBear.ai's revenue climbed by a solid 22% from last year, although that follows a trend of weaker results in prior quarters. In contrast to Palantir, BigBear.ai is not currently profitable and continues to lose cash, which has kept its stock price under pressure. If BigBear.ai is going to be the next Palantir, it will need to deliver much stronger growth. Data source: Yahoo Finance. YOY = year over year. Where BigBear.ai stands out is through early leadership in the field of AI-powered computer vision. The company's Pangiam digital identity brand leverages biometrics with real-time images and videos to automatically detect anomalies and secure against threats. Several major airports globally are current BigBear.ai customers, utilizing products like the "TrueFace" and "veriScan" verification systems in their security screening. Ultimately, the allure of BigBear.ai as an investment lies in its unique vision-AI technology, which has applications far beyond transportation and logistics. The platform shows promise in transforming multiple industries, including healthcare diagnostics, agricultural monitoring, retail inventory management, and manufacturing quality control. Investors confident in the company's ability to execute a growth strategy by entering these new commercial markets have a good reason to buy the stock today. Favorably, shares of BigBear.ai are trading at under 4 times its full-year Wall Street analyst revenue estimate as a forward price-to-sales (P/S) ratio. This level represents a deep discount to Palantir stock, which has exploded to an eye-watering forward sales multiple of 54. My interpretation is that Palantir has become very expensive, while shares of BigBear.ai offer better value and likely have more upside in a scenario where its results begin to outperform expectations. The key question for investors is not whether BigBear.ai will ever be more valuable than Palantir, but if the stock can deliver a similar level of multibagger performance. I believe that possibility is on the table, with 2025 being a critical year for the company to demonstrate its differentiated AI solutions can find new commercial use cases. In the meantime, BigBear.ai's weaker fundamentals and financial uncertainties may keep shares under pressure. For investors with a long-term time horizon and who can stomach volatility, Bigbear.ai stock can work within a diversified portfolio.

Is this company the next Palantir Technologies and can it deliver a similar level of multibagger performance? Here's what reports are saying

Palantir Technologies has indeed proved its worth by recording some surreal amount of return for US investors, after projecting an overall banner year for itself. The data giant company is now looking to score even bigger, but there is another company gearing up to follow the lines of Palantir, and reports suggest it can deliver similar amount of massive returns at the stock market. The overall stature of the US stock market has been phenomenal this year, especially in the last few months. After the US Presidential elections of 2024 ended, the three stock indexes are destined to close the year with a bang, with this year being one of the biggest years for American stocks till now. Among these major set of optimum returning-yielding stocks, likes Palantir Technologies, which is one of the biggest data giants in US, and its growth at the stock market has been simply off the charts in 2024. Meanwhile, there is a similar company like Palantir Technologies, which is a tech-sector small-cap stock, and has the potential of giving US investors some massive returns this year, as well as the next, according to a Motley Fool Report. BigBear.ai is a company that deals in AI applications, which have some major potential of solving some critical everyday problems, and is therefore being betted upon to be the next Palantir Technologies in he making. Also Read: Ivanka Trump showed millions of followers a different side of her over the weekend; here's what she did Although BigBear.ai's market capitalization may be quite small as compared to a big data giant like Palantir, this AI-based company's stock, according to reports, has the potential of giving some amazing equity value to its investors, something that is a fundamental of any high-return yielding stock. Meanwhile, reports suggest that BigBear.ai and Palantir even have an ongoing strategic partnership to incorporate each other's capabilities, which means the smaller stock can get the popularity advantage of Palantir's amazing surge. Also Read : Sex Lives of College Girls season 3: Here's big update for fans What is BigBear.ai all about? BigBear.ai is all about helping organizations make better decisions using the power of artificial intelligence (AI), through their intelligence solutions using software products. Is Palantir Technologies a profitable company? Palantir Technologies has recently transitioned from being unprofitable to a profitable company. In the past, they focused heavily on growth and investing in their platform, which led to losses.