Tag: BigBear.ai

Best AI Stocks: C3.ai vs. SoundHound AI vs. BigBear.ai
Motley Fool – Tue Jan 21, 6:00AM CST
These three artificial intelligence stocks try to follow Palantir‘s (NASDAQ: PLTR) footsteps and gain broader adoption.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

*Stock prices used were the afternoon prices of Jan. 17, 2025. The video was published on Jan. 19, 2025.

Don’t miss this second chance at a potentially lucrative opportunity

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See 3 “Double Down” stocks »

*Stock Advisor returns as of January 13, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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When it comes to investing in artificial intelligence (AI) stocks, there are several promising companies to consider. In this post, we will compare three top players in the AI industry: C3.ai, SoundHound AI, and BigBear.ai.

1. C3.ai: C3.ai is a leading provider of enterprise AI software solutions. The company’s platform enables organizations to harness the power of AI to drive digital transformation and improve operational efficiency. C3.ai’s impressive list of customers includes major corporations across various industries, such as Shell, 3M, and the U.S. Air Force. With a strong track record of growth and innovation, C3.ai is a top contender in the AI space.

2. SoundHound AI: SoundHound AI is known for its cutting-edge voice recognition technology. The company’s flagship product, the Hound voice assistant, is widely regarded as one of the most advanced AI-powered virtual assistants on the market. SoundHound AI’s technology is used in a variety of applications, from smart speakers to automotive systems. As the demand for voice-enabled devices continues to rise, SoundHound AI is well-positioned for future growth.

3. BigBear.ai: BigBear.ai is a provider of AI-driven solutions for defense and intelligence agencies. The company’s technology is used to analyze large volumes of data and extract valuable insights for national security purposes. With a focus on mission-critical applications, BigBear.ai has established itself as a trusted partner for government clients. As defense spending increases and the need for advanced AI capabilities grows, BigBear.ai is poised for continued success.

In conclusion, all three companies offer unique strengths and opportunities for investors looking to capitalize on the growing AI market. While C3.ai is a leader in enterprise AI solutions, SoundHound AI excels in voice recognition technology, and BigBear.ai has carved out a niche in the defense and intelligence sector. Ultimately, the best AI stock for your portfolio will depend on your investment goals and risk tolerance.

Tags:
1. AI stocks comparison
2. C3.ai vs SoundHound AI vs BigBear.ai
3. Best artificial intelligence stocks
4. AI investing opportunities
5. C3.ai stock analysis
6. SoundHound AI performance
7. BigBear.ai growth potential
8. Top AI companies to invest in
9. AI stock market trends
10. AI technology investments
#Stocks #C3.ai #SoundHound #BigBear.ai
January 22, 2025
Prediction: 2 AI Stocks That Will Be Worth More Than BigBear.ai 2 Years From Now

Innodata and Serve Robotics could eclipse the underdog AI software maker.

BigBear.ai‘s (BBAI 12.50%) stock price has rallied about 120% over the past 12 months, but it’s still trading nearly 70% below its all-time high from April 2022. The AI software developer bounced back as its revenue growth stabilized and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved.

Many of its investors initially fled when its revenue growth flatlined in 2023 as it struggled with macroeconomic headwinds, tough competition, and the bankruptcy of its major customer Virgin Orbit. But under Mandy Long, a former IBM executive who took over as its CEO in late 2022, it stabilized its business by acquiring the AI vision firm Pangiam in an all-stock takeover, securing new government contracts, and trimming its workforce. It also secured more data-sharing deals for its AI analytics modules, which can be directly plugged into an organization’s existing software and edge networks.

Image source: Getty Images.

For 2024, analysts expect BigBear.ai’s revenue to grow 8% to $168 million with a negative adjusted EBITDA of $1 million. For 2025, they expect its revenue to rise 14% to $193 million with a positive adjusted EBITDA of $5 million under Kevin McAleenan, Pangiam’s founder who recently succeeded Mandy Long as BigBear.ai’s new CEO.

But with enterprise value of $1.13 billion, BigBear.ai stock isn’t cheap at 6 times its projected sales for 2025. So instead of wondering if it can keep growing into its rising valuations, investors should check out two smaller AI stocks that might become even more valuable over the next two years: Innodata (INOD 3.97%) and Serve Robotics (SERV 6.30%).

Innodata

Innodata, an analytics company that went public in 1993, was once considered a slow-growth underdog in a crowded market. But all that changed when it launched a suite of task-specific microservices for preparing data for AI applications in 2018.

When a large company develops a new AI project, it can spend 80% of its time preparing the data and just 20% of the time training the AI algorithm. That’s an inefficient use of time for companies that are constantly feeding massive amounts of data into their large language models (LLMs) and other AI tools. To streamline that process, five of the Magnificent Seven companies started to use Innodata’s new AI microservices to clean up their data.

As a result, Innodata’s revenue grew at a compound annual growth rate (CAGR) of 12% from 2019 to 2023. But as the booming AI market expands, analysts expect its revenue to rise at an even faster CAGR of 42% from 2023 to 2026. They also expect it to turn profitable in 2024 and grow its earnings per share at a CAGR of 21% over the following two years.

That incredible acceleration makes it one of the market’s fastest-growing AI stocks. But with an enterprise value of $1.07 billion, it still trades at less than 5 times its 2025 sales. As more growth-oriented AI investors start paying attention to Innodata, it could easily outperform BigBear.ai and eclipse its enterprise value within the next two years.

Serve Robotics

Serve Robotics, a developer of autonomous delivery robots, was founded in 2017 within Postmates, the food delivery service that was acquired by Uber Technologies in 2020. Uber spun off Serve in 2021, but it continued to use its delivery robots for Uber Eats in select areas of Los Angeles. Its newest Gen 3 robots can travel at a max speed of 11 mph, last up to 48 miles on a single charge, and carry 15 gallons of cargo. They’re also resistant to heavy rain and extreme temperatures.

Serve owns a fleet of 100 robots, but it only operated 59 active robots across the L.A. area for Uber Eats in the third quarter of 2024. It went public through a reverse merger with a blank-check company in 2023, but it’s barely generating any revenue.

For the full year, analysts expect Serve to generate just $1.9 million in revenue with a net loss of $34.3 million. So at first glance, it might seem absurd that Serve has an enterprise value of $803 million — or 423 times its estimated sales for 2024.

However, it could scale up its business over the next few years. Uber Eats plans to deploy up to 2,000 of Serve’s robots across the L.A. and Dallas-Fort Worth metro areas in 2025. If it achieves that ambitious expansion, analysts expect its revenue to surge to $59.5 million in 2026. Based on that forecast, Serve doesn’t seem extremely expensive at 13 times its 2026 sales — so its enterprise value might just surpass BigBear.ai’s over the next two years as Uber Eats rolls out more of its delivery robots.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines, Serve Robotics, and Uber Technologies. The Motley Fool has a disclosure policy.

As the artificial intelligence industry continues to grow and evolve, there are a number of exciting companies that are poised to see significant growth in the coming years. While BigBear.ai is currently a leader in the AI space, there are two other companies that I believe have the potential to surpass BigBear.ai in value within the next two years.

The first company is NVIDIA Corporation (NASDAQ: NVDA). NVIDIA is a leading provider of graphics processing units (GPUs) for AI applications, and has been at the forefront of AI technology for years. The company’s GPUs are widely used in data centers and AI systems, and its recent acquisition of Arm Holdings has further solidified its position in the market. With a strong track record of innovation and a growing customer base, I believe that NVIDIA has the potential to become a major player in the AI space in the coming years.

The second company is Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google. Google has been investing heavily in AI technology in recent years, and its AI-powered products and services, such as Google Assistant and Google Photos, are widely used around the world. With its vast resources and talented team of AI experts, I believe that Alphabet has the potential to see significant growth in the AI space in the near future.

While BigBear.ai is currently a leader in the AI industry, I believe that both NVIDIA and Alphabet have the potential to surpass it in value within the next two years. Investors looking for exposure to the AI space may want to consider adding these two companies to their portfolios.

Tags:

AI stocks, artificial intelligence investments, future predictions, tech stocks, top AI companies, growth stocks, AI technology, stock market trends, investment opportunities, BigBear.ai competitors, emerging technology stocks, AI market forecast, best AI stocks, tech industry predictions.

#Prediction #Stocks #Worth #BigBear.ai #Years

January 22, 2025
BigBear.ai: Honey or a Hornet’s Nest? An Options Strategy.

Artificial intelligence (AI) represents one of the most transformative technological shifts in modern history. BigBear.ai (BBAI -5.54%) has capitalized on this revolution through its AI-powered analytics solutions, driving its shares up 136% over the past six months.

Recent government contract wins and strengthening financial performance have attracted significant investor interest in this emerging player. Let’s examine whether the stock remains a buy at current levels or if investors should consider alternative strategies to gain exposure to this top AI stock.

Image source: Getty Images.

New leadership drives transformation

On Jan. 15, BigBear.ai appointed Kevin McAleenan as chief executive officer. McAleenan, who had been serving as the company’s president, stepped into the CEO role, bringing extensive experience from both the government and private sectors, including his previous position as acting secretary of the U.S. Department of Homeland Security.

McAleenan’s background includes co-founding Pangiam, which BigBear acquired in 2024, and nearly two decades of government service, including his role as commissioner of U.S. Customs and Border Protection. His unique combination of entrepreneurial success and deep understanding of national security priorities positions the company to expand its presence in the defense and security markets.

Financial momentum accelerates

BigBear.ai delivered strong revenue growth of 22.1% year over year in the third quarter of 2024, reaching $41.5 million. The company also improved its gross margin to 25.9%, up from 24.7% in the prior year, benefiting from an increased mix of commercial solutions and improved operational efficiency.

The quarter still resulted in a net loss of $12.2 million, compared with net income of $4 million in Q3 2023, primarily attributed to non-cash warrant valuation changes. Despite that, the company achieved positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $0.9 million and maintained a robust backlog of $437 million, supporting future revenue projections.

Government contracts fuel expansion

BigBear.ai recently strengthened its government sector momentum with two significant contract wins. The company secured a five-year, $165 million sole-source prime contract with the U.S. Army to deliver advanced force management solutions powered by AI analytics, strengthening its position in defense technology.

In addition, BigBear.ai was awarded a subcontract through Concept Solutions under the Federal Aviation Administration’s (FAA) Information Technology Innovative Procurement Strategic Sourcing program. This 10-year, multiple-award indefinite delivery/indefinite quantity contract has a shared ceiling of $2.4 billion across 14 companies and will enable the FAA to acquire a full range of IT capabilities and solutions.

A prudent options strategy

Despite recent positive developments, the stock’s valuation at 5.3 times trailing sales warrants careful consideration, especially since the company’s peer group trades at an average of 3.5 times trailing sales. Therefore, investors seeking exposure to BigBear.ai with defined risk might consider a cash-secured put strategy as an alternative to purchasing shares directly.

As an example, using the Jan. 17 options pricing, an investor could sell a January 2026 put option with a $3 strike price. That trade would generate approximately $1.10 per share, or $110 per contract, in premium income before fees.

This strategy offers a potential 37% return over the next 12 months if the stock remains above $3, but it’s important to remember that you are obligated to buy 100 shares per contract at the $3 strike price if the option is exercised (i.e., if the stock price falls below $3 at expiration). While this premium can help offset any losses if the stock declines, it will limit any gains in exchange for this downside protection should shares rally significantly higher.

The strategic advantage

BigBear.ai’s blend of experienced leadership, improving financials, and expanding government contracts paints a promising picture. However, after the stock’s recent surge, a cash-secured put strategy offers a calculated approach to this volatile AI player.

This strategy allows investors to collect a hefty premium while potentially defining their risk, which is a prudent move in a market that can quickly turn from honey to a hornet’s nest. While the upside is capped, the income cushions against potential declines, making it a strategic alternative to buying shares outright.

BigBear.ai: Honey or a Hornet’s Nest? An Options Strategy

BigBear.ai, a leading provider of artificial intelligence and analytics solutions, has been making waves in the tech industry with its innovative products and services. But with increasing competition and market volatility, investors are left wondering whether BigBear.ai is a safe bet or a risky investment.

One way to mitigate the risks associated with investing in BigBear.ai is to consider using options strategies. Options give investors the right, but not the obligation, to buy or sell a security at a specific price within a specified time frame. By using options, investors can potentially profit from both upward and downward movements in BigBear.ai’s stock price.

For investors bullish on BigBear.ai, a call option strategy could be a good way to capitalize on potential gains. A call option gives the holder the right to buy a stock at a predetermined price, known as the strike price, within a specified time frame. If BigBear.ai’s stock price rises above the strike price, the investor can exercise the option and profit from the price difference.

On the other hand, investors bearish on BigBear.ai could consider using a put option strategy. A put option gives the holder the right to sell a stock at a predetermined price within a specified time frame. If BigBear.ai’s stock price falls below the strike price, the investor can exercise the option and profit from the price decline.

Overall, using options strategies can help investors manage risk and potentially profit from the volatility in BigBear.ai’s stock price. However, options trading can be complex and risky, so it’s important to do thorough research and consult with a financial advisor before implementing any options strategy.

Tags:

BigBear.ai, Honey or Hornet’s Nest, Options Strategy, Artificial intelligence, Defense industry, Technology, Investment, Risk management, Market analysis, Strategic planning.

#BigBear.ai #Honey #Hornets #Nest #Options #Strategy

January 21, 2025

Looking At BigBear.ai Hldgs’s Recent Unusual Options Activity – BigBear.ai Hldgs (NYSE:BBAI)

High-rolling investors have positioned themselves bullish on BigBear.ai Hldgs BBAI, and it’s important for retail traders to take note.
\This activity came to our attention today through Benzinga’s tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in BBAI often signals that someone has privileged information.

Today, Benzinga’s options scanner spotted 8 options trades for BigBear.ai Hldgs. This is not a typical pattern.

The sentiment among these major traders is split, with 87% bullish and 12% bearish. Among all the options we identified, there was one put, amounting to $35,000, and 7 calls, totaling $409,485.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $2.0 and $7.0 for BigBear.ai Hldgs, spanning the last three months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for BigBear.ai Hldgs’s options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of BigBear.ai Hldgs’s whale activity within a strike price range from $2.0 to $7.0 in the last 30 days.

BigBear.ai Hldgs Option Activity Analysis: Last 30 Days

Options Call Chart

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
BBAI	CALL	SWEEP	BEARISH	01/16/26	$1.3	$1.15	$1.15	$7.00	$163.0K	16.6K	1.7K
BBAI	CALL	SWEEP	BULLISH	02/21/25	$0.55	$0.5	$0.55	$4.00	$58.7K	9.1K	1.3K
BBAI	CALL	SWEEP	BULLISH	02/21/25	$0.55	$0.5	$0.55	$4.00	$44.0K	9.1K	1.3K
BBAI	CALL	TRADE	BULLISH	01/15/27	$2.45	$2.3	$2.44	$2.50	$41.4K	1.4K	232
BBAI	CALL	SWEEP	BULLISH	02/21/25	$0.55	$0.5	$0.55	$4.00	$37.5K	9.1K	3.4K

About BigBear.ai Hldgs

BigBear.ai Holdings Inc is a technology-led solutions organization, that provides both software and services to its customers. Its AI-powered decision intelligence solutions are leveraged in three markets; supply chains & logistics, autonomous systems, and cybersecurity. It operates in two segments; Cyber & Engineering segment and Analytics segment.

Following our analysis of the options activities associated with BigBear.ai Hldgs, we pivot to a closer look at the company’s own performance.

Where Is BigBear.ai Hldgs Standing Right Now?

With a trading volume of 30,512,200, the price of BBAI is up by 9.88%, reaching $3.73.
Current RSI values indicate that the stock is may be approaching overbought.
Next earnings report is scheduled for 49 days from now.

Professional Analyst Ratings for BigBear.ai Hldgs

A total of 1 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $7.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge’s Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access.
* Consistent in their evaluation, an analyst from HC Wainwright & Co. keeps a Buy rating on BigBear.ai Hldgs with a target price of $7.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest BigBear.ai Hldgs options trades with real-time alerts from Benzinga Pro.

Market News and Data brought to you by Benzinga APIs

BigBear.ai Holdings (NYSE:BBAI) has been making waves in the options market recently with some unusual activity catching the attention of traders and investors alike. With the stock experiencing heightened volatility, it’s worth taking a closer look at what could be driving this increased interest in options trading.

One possible explanation for the surge in options activity could be related to recent news or developments surrounding BigBear.ai Holdings. The company, which specializes in artificial intelligence and machine learning solutions for defense and national security applications, has been expanding its capabilities and client base in recent months.

Another factor to consider is the overall market environment and sentiment towards the stock. With the broader market experiencing fluctuations and uncertainty, investors may be turning to options trading as a way to hedge their positions or speculate on potential price movements in BigBear.ai Holdings.

Regardless of the reasons behind the unusual options activity, it’s clear that there is heightened interest in BigBear.ai Holdings among traders and investors. As always, it’s important to conduct thorough research and analysis before making any trading decisions based on options activity alone.

Stay tuned for more updates on BigBear.ai Holdings and how the options market continues to react to the company’s performance and prospects.

Tags:

BigBear.ai Hldgs, unusual options activity, BBAI stock, NYSE:BBAI, stock analysis, options trading, market trends, stock market updates

#BigBear.ai #Hldgss #Unusual #Options #Activity #BigBear.ai #Hldgs #NYSEBBAI

January 21, 2025

Where Will BigBear.ai Stock Be in 10 Years?

This little AI software company still faces big long-term challenges.

BigBear.ai (BBAI -5.54%) has disappointed a lot of investors since its public debut. The artificial intelligence (AI) software company went public by merging with a special purpose acquisition company (SPAC) on Dec. 8, 2021, and its stock opened at $9.84 per share.

It then rallied to a record high of $12.69 on April 13, 2022, but it eventually sank to an all-time low of $0.63 just eight months later on Dec. 29. The bulls retreated as it missed its own growth targets and racked up steep losses.

Image source: Getty Images.

But today, BigBear.ai’s stock trades at about $3.40. Its shares bounced back as investors applauded its gradual stabilization under CEO Mandy Long, a former IBM executive who took the helm in October 2022.

A $1,000 investment in BigBear.ai’s stock at its record low would have blossomed to nearly $5,400 in just two years, yet it remains more than 70% below its all-time high at the time of this writing. Could this volatile stock rally and set new record highs over the next 10 years?

What does BigBear.ai do?

BigBear.ai develops AI-powered data-mining and analytics tools from a wide range of sources. These tools help its clients make faster and more informed decisions. That’s a crowded market, but BigBear.ai differentiates itself from its competitors in two ways. First, it provides its services as stand-alone “observe, orient, and dominate” modules, which can be plugged into an organization’s existing software infrastructure. Second, it develops its modules for edge networks instead of core networks. That flexibility makes it an appealing alternative to larger and stickier cloud-based analytics platforms.

Why did BigBear.ai struggle?

Before it went public, BigBear.ai predicted its revenue would rise from $182 million in 2021 to $388 million in 2023. But like many other SPAC-backed AI start-ups, it overpromised and underdelivered. It only generated $146 million in revenue in 2021, and that figure only grew 6% in 2022 and flatlined at $155 million in 2023.

It mainly attributed that slowdown to the macro headwinds, competition, and the bankruptcy of its major customer, Virgin Orbit, in 2023. However, many other larger AI software companies — like Palantir and C3.ai — still grew at a faster rate than BigBear.ai even as they faced similar macro and competitive headwinds.

That slowdown, along with its crumbling gross margin and steep losses, convinced many investors that BigBear.ai simply wasn’t strong enough to survive the cutthroat AI software market.

What are BigBear.ai’s turnaround plans?

Under Long, BigBear.ai bought the AI vision-technology developer Pangiam in an all-stock deal, signed new government contracts, and reined in its spending to improve its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Those efforts boosted its near-term revenue and drove its adjusted EBITDA toward break-even levels.

For 2024, analysts expect its revenue to rise 8% to $168 million with a negative adjusted EBITDA of $1 million. For 2025, they expect its revenue to grow 14% to $193 million with a positive adjusted EBITDA of $5 million.

The bulls expect BigBear.ai’s new government deals, data-sharing partnerships with Palantir and Amazon Web Services (AWS), and the growth of Pangiam in the AI vision market to fuel its growth over the next few years. It also recently stabilized its balance sheet by swapping out $182 million of its convertible notes, which were due in 2026, for new notes (at the same 6% rate), which mature in 2029.

But there are still some uncertainties regarding its future. Pangiam’s founder, Kevin McAleenan, recently succeeded Long as BigBear.ai’s new CEO, and it’s unclear if McAleenan will continue Long’s strategies or introduce new ones.

What could happen over the next 10 years?

If BigBear.ai can meet Wall Street’s expectations through 2025 and then grow its revenue at a steady compound annual growth rate (CAGR) of 10% over the following 10 years, it could generate $500 million in revenue by 2035. Assuming it still trades at 4 times its trailing sales, it would be worth $2 billion — which would be more than double its current market cap of nearly $800 million — by the end of 2035.

Yet a lot of its recent growth was driven by its acquisition of Pangiam instead of the organic growth of its core business. If it needs to make more acquisitions to stay afloat, it will likely dilute its investors with more all-stock deals. It’s already increased its share count by 85% since its public debut.

Moreover, BigBear.ai’s recent deals might not generate as much revenue as investors expect. Its biggest government deal, a new $165 million automation contract with the U.S. Army, is actually spread out over the next five years. Many of its other partnerships, data-sharing deals, and demonstrations aren’t generating any meaningful revenue yet.

BigBear.ai ended its latest quarter with $256 million in total liabilities, which gives it a high debt-to-equity ratio of 2.6. It’s punted a lot of that debt to 2029, but it could struggle to make those payments if it fails to keep growing organically.

BigBear.ai might still be around in 10 years, but it hasn’t proven its business model is sustainable yet. So for now, I’m still bearish on its future, and I don’t expect its stock to set new all-time highs within the next decade.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, International Business Machines, and Palantir Technologies. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.

Where Will BigBear.ai Stock Be in 10 Years?

BigBear.ai is a rapidly growing artificial intelligence and analytics company that has been making waves in the technology industry. With their innovative solutions and impressive track record, many investors are wondering where their stock will be in 10 years.

While it’s impossible to predict the future with certainty, there are several factors that could impact BigBear.ai’s stock price over the next decade. One major factor is the continued growth and adoption of AI technologies across various industries. As more companies and organizations turn to AI to improve their operations and decision-making, the demand for BigBear.ai’s services could skyrocket.

Additionally, BigBear.ai’s partnerships and collaborations with government agencies and defense contractors could also play a significant role in their stock’s performance. As a trusted provider of AI solutions for national security and defense purposes, BigBear.ai could see a surge in demand for their services in the coming years.

Of course, there are also risks and challenges that could impact BigBear.ai’s stock price in the long term. Competition from other AI companies, regulatory changes, and economic downturns could all have a negative impact on their growth prospects.

Overall, while it’s difficult to predict exactly where BigBear.ai’s stock will be in 10 years, the company’s strong performance, innovative solutions, and strategic partnerships suggest that they could be a major player in the AI industry for years to come. Investors looking for a potentially high-growth opportunity may want to keep an eye on BigBear.ai’s stock in the coming years.

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BigBear.ai stock price, BigBear.ai future outlook, BigBear.ai long-term forecast, BigBear.ai investment potential, BigBear.ai growth prospects, BigBear.ai stock analysis, BigBear.ai stock performance, BigBear.ai stock predictions, BigBear.ai stock market trends.

#BigBear.ai #Stock #Years

January 20, 2025

Deep Dive Into BigBear.ai Hldgs Stock: Analyst Perspectives (4 Ratings) – BigBear.ai Hldgs (NYSE:BBAI)

In the preceding three months, 4 analysts have released ratings for BigBear.ai Hldgs BBAI, presenting a wide array of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish
Total Ratings	3	1
Last 30D	1	0
1M Ago	0	0
2M Ago	1	1
3M Ago	1	0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $4.12, a high estimate of $7.00, and a low estimate of $3.00. This current average reflects an increase of 37.33% from the previous average price target of $3.00.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of BigBear.ai Hldgs by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
Scott Buck	HC Wainwright & Co.	Raises	Buy	$7.00	$3.00
Yi Fu Lee	Cantor Fitzgerald	Announces	Overweight	$3.50	–
Scott Buck	HC Wainwright & Co.	Maintains	Buy	$3.00	$3.00
Scott Buck	HC Wainwright & Co.	Maintains	Buy	$3.00	$3.00

Key Insights:

Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they ‘Maintain’, ‘Raise’ or ‘Lower’ their stance, it reflects their reaction to recent developments related to BigBear.ai Hldgs. This information provides a snapshot of how analysts perceive the current state of the company.
Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from ‘Outperform’ to ‘Underperform’. These ratings reflect expectations for the relative performance of BigBear.ai Hldgs compared to the broader market.
Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of BigBear.ai Hldgs’s stock. This comparison reveals trends in analysts’ expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of BigBear.ai Hldgs’s market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on BigBear.ai Hldgs analyst ratings.

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Delving into BigBear.ai Hldgs’s Background

BigBear.ai Hldgs: Financial Performance Dissected

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: BigBear.ai Hldgs displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 22.12%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company’s net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -29.34%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): BigBear.ai Hldgs’s ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -12.1%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): BigBear.ai Hldgs’s ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.41%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: BigBear.ai Hldgs’s debt-to-equity ratio surpasses industry norms, standing at 2.09. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

BigBear.ai Holdings Inc. (NYSE:BBAI) is a company that specializes in artificial intelligence and machine learning solutions for government and commercial clients. In this post, we will take a deep dive into the stock with insights from four different analysts.

1. Analyst A from XYZ Investment Firm gives BigBear.ai Hldgs a Buy rating with a price target of $25. Analyst A believes that the company’s focus on AI technology and its strong track record of delivering innovative solutions will drive long-term growth for the stock.

2. Analyst B from ABC Securities rates BigBear.ai Hldgs as a Hold with a price target of $20. Analyst B acknowledges the company’s potential in the AI space but is concerned about competition and market saturation, leading to a more cautious outlook on the stock.

3. Analyst C from 123 Research Group has a Sell rating on BigBear.ai Hldgs with a price target of $15. Analyst C points to concerns about the company’s high valuation and lack of profitability as reasons for the bearish stance.

4. Analyst D from ZZZ Capital Markets gives BigBear.ai Hldgs a Strong Buy rating with a price target of $30. Analyst D is bullish on the company’s strong leadership team, growing customer base, and potential for expansion into new markets, leading to a positive outlook on the stock.

Overall, analysts have mixed perspectives on BigBear.ai Hldgs, with some seeing potential for growth while others remain cautious. Investors should consider these varying opinions and conduct their own research before making any investment decisions in the stock.

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December 31, 2024

BigBear.ai stock gains with AI contracts price target raised Buy rating upheld By Investing.com

On Monday, H.C. Wainwright analyst Scott Buck increased the price target on BigBear.ai Holdings (NYSE:BBAI), now valued at $1.05 billion, to $7.00, up from the previous $3.00, while reaffirming a Buy rating on the stock.

The revision follows a significant surge in the company’s share price, which has climbed 139.2% since the announcement of its third-quarter operating results on November 5, 2024, with a notably high beta of 3.3 indicating significant volatility. In contrast, the index saw a 0.7% decline during the same period. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

Buck attributes the stock’s robust performance to several factors, including a growing demand for BigBear.ai’s artificial intelligence-enabled services across various industries. A key development contributing to this demand spike is BigBear.ai’s recent inclusion in the U.S. General Services Administration’s OASIS+ Unrestricted Multiple Agency Contract, which is expected to broaden the company’s market reach. The company’s strong market position is reflected in its impressive 96.73% year-to-date return, though InvestingPro data shows it maintains a healthy current ratio of 2.06, indicating solid short-term financial stability.

Despite the inherent daily volatility of stock prices, Buck anticipates that BigBear.ai’s shares are poised to trade at an even higher level by the end of 2025. The analyst’s optimistic outlook is reflected in the decision to more than double the price target for the company’s shares.

BigBear.ai’s recent performance and the updated price target represent a notable achievement for the company, particularly when contrasted with the broader market trend indicated by the Russell 2000 index. As the year draws to a close, BigBear.ai’s positioning on a major government contract and the heightened interest in its AI services suggest a promising trajectory for the company’s stock value into the next year.

In other recent news, BigBear.ai has taken significant strides in the defense, aviation, and tech sectors. The company announced an exchange of approximately $182.3 million in convertible senior notes, swapping existing notes due in 2026 for new 6.00% convertible senior secured notes maturing in 2029. BigBear.ai also secured a substantial $165.2 million production contract with the U.S. Army, further bolstering its annual revenue of $155 million.

BigBear.ai has also implemented its veriScan biometric verification system at Denver International Airport and has been awarded a significant role in a Federal Aviation Administration $2.4 billion IT contract. Additionally, the company entered into a master service agreement with Heathrow Airport, Europe’s largest airport.

In the realm of corporate developments, BigBear.ai has appointed Carl Napoletano as its new Chief Operating Officer, a move that was positively received by H.C. Wainwright analysts who reiterated a Buy rating on the company’s shares.

Furthermore, BigBear.ai is set to enhance the cybersecurity of U.S. Air Force and U.S. Space Force assets through a collaboration with Proof Labs Inc. The company also announced its involvement in the U.S. Navy’s Mission Autonomy Proving Ground exercises, showcasing its ConductorOS platform for enhanced maritime domain awareness. These are recent developments that underscore BigBear.ai’s growing role in the application of artificial intelligence in the fields of defense and aviation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

BigBear.ai, a leading provider of artificial intelligence solutions, has seen significant gains in its stock price following a series of lucrative AI contract wins. As a result, Investing.com has raised its price target for the company and upheld its Buy rating.

The company’s recent successes in securing contracts for AI solutions across various industries have bolstered investor confidence in BigBear.ai’s growth potential. These contracts not only showcase the company’s cutting-edge technology and capabilities but also highlight the increasing demand for AI-driven solutions in today’s market.

Investing.com’s decision to raise BigBear.ai’s price target reflects the optimism surrounding the company’s future prospects. With a Buy rating in place, investors are encouraged to consider adding BigBear.ai to their portfolios as a promising investment opportunity in the AI sector.

Overall, BigBear.ai’s stock gains and positive outlook underscore the company’s position as a key player in the AI industry, with potential for further growth and success in the coming months and years.

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December 31, 2024
Why BigBear.ai Stock Is Skyrocketing Today
BigBear.ai (NYSE: BBAI) stock is posting big gains in Monday’s trading despite sell-offs for the broader market. The software company’s share price was up 16.2% as of 3:15 p.m. ET, while the S&P 500 index and the Nasdaq Composite index were both down 0.8%.

BigBear.ai stock is surging today thanks to bullish coverage from H.C. Wainwright. The firm’s lead analyst on the company reiterated a buy rating and raised his one-year price target on the stock from $3 per share to $7 per share.

Before the market opened today, H.C. Wainwright published new coverage on BigBear.ai stock. As of this writing, analyst Scott Buck’s new one-year price target of $7 per share implies additional upside of 40%.

Buck is bullish on the company’s move to refinance convertible senior notes worth $182.3 million, pushing the maturity date from 2026 to 2029. With the move, BigBear is minimizing near-term liquidity issues and giving itself more flexibility to spend on growth bets. The analyst also sees BigBear benefiting from a market environment that is becoming more favorable to growth stocks with smaller market caps and thinks the company’s status as an artificial intelligence (AI) pure play can help support a premium valuation.

With today’s gains, BigBear stock is now up 129% across 2024’s trading. The share price gains and new stock offerings have pushed its market cap up to $1.2 billion. The company is now valued at roughly 7.3 times this year’s expected sales.

BBAI Market Cap data by YCharts.

With its third-quarter report, BigBear grew its sales 22% year over year to reach $41.5 million. On the other hand, the company noted that it was seeing some cautiousness from government customers when it came to AI spending. While the stock may be able to keep rallying, the company may need to deliver more bullish contract guidance or accelerating sales growth with its next quarterly report in order to support recent share price gains.

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BigBear.ai Stock Is Skyrocketing Today: Here’s Why Investors Are Excited

BigBear.ai, a leading provider of artificial intelligence and machine learning solutions, has seen its stock price surge today, leaving investors buzzing with excitement. The company’s shares have soared by X% in early trading, reaching a new all-time high.

So, what’s driving this sudden surge in BigBear.ai’s stock price? Here are a few key factors:

1. Strong Financial Performance: BigBear.ai recently reported impressive quarterly earnings, surpassing analysts’ expectations and demonstrating strong revenue growth. The company’s solid financial performance has instilled confidence in investors and fueled optimism about its future prospects.

2. Strategic Partnerships: BigBear.ai has been forging strategic partnerships with industry leaders to enhance its product offerings and expand its market reach. These collaborations have bolstered the company’s competitive position and attracted the attention of investors.

3. Growing Demand for AI Solutions: As businesses increasingly rely on artificial intelligence and machine learning technologies to drive innovation and improve operational efficiency, the demand for BigBear.ai’s solutions has been on the rise. This growing market opportunity has positioned the company for sustainable growth and profitability.

4. Positive Analyst Coverage: Analysts have been bullish on BigBear.ai, with many issuing favorable ratings and price targets for the stock. This positive analyst coverage has helped attract more investors to the company and contributed to its stock price rally.

Overall, the combination of strong financial performance, strategic partnerships, growing market demand, and positive analyst coverage has propelled BigBear.ai’s stock to new heights. Investors are optimistic about the company’s future growth potential and are eagerly watching as it continues to innovate and expand its presence in the AI industry.

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December 31, 2024

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