BigBear.ai Holdings, Inc. (BBAI) closed at $1.59 in the latest trading session, marking a +0.64% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 0.12%.Heading into today, shares of the company had lost 28.51% over the past month, lagging the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9% in that time.The investment community will be paying close attention to the earnings perf ...

Core Insights - The article discusses the struggles of two AI companies, BigBear.ai and SoundHound AI, which went public through SPAC mergers but have since seen significant declines in their stock prices due to missed growth expectations and challenging market conditions [1][2]. Company Analysis: BigBear.ai - BigBear.ai specializes in data mining and analytics tools, primarily serving large government agencies and enterprise customers [3]. - The company initially projected a compound annual growth rate (CAGR) of 40%, expecting revenue to grow from $140 million in 2020 to $388 million in 2023, with gross margins expanding from 30% to 50% [3]. - However, from 2020 to 2023, BigBear.ai's revenue grew at a CAGR of only 3.5%, reaching $155 million, and its gross margin declined to 26% in 2023 [4]. - The company faced challenges due to the bankruptcy of a major customer and overestimated its growth potential, leading to the resignation of its CEO in October 2022 [4][5]. - The new CEO has focused on cost-cutting and business rightsizing, with expectations of revenue growth of 26% to 39% in the current year [5]. - BigBear.ai's stock is currently trading at 2 times this year's sales, indicating it may be undervalued, but there are concerns about its long-term organic growth potential [5]. Company Analysis: SoundHound AI - SoundHound AI develops audio and speech recognition tools, with a flexible platform that allows companies to create their own speech tools [6]. - The company initially projected a CAGR of 104%, expecting revenue to grow from $13 million in 2020 to $110 million in 2023, with gross margins increasing from 55% to 77% [6]. - In reality, SoundHound generated only $46 million in revenue in 2023, representing a CAGR of 52%, while its gross margin rose to 75% [7]. - The company has faced stiff competition from larger tech firms and laid off nearly half its workforce last year, with expectations of not achieving positive adjusted EBITDA until 2025 [7]. - Despite a projected revenue increase of about 52% this year, SoundHound's stock is considered expensive at 21 times this year's sales [7]. Investment Perspective - Between the two companies, SoundHound AI is viewed as the better investment option due to its faster growth, organic revenue increase, wider competitive moat, and higher gross margins [8].

BigBear.ai Holdings, Inc. (BBAI) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this company have returned -21.5%, compared to the Zacks S&P 500 composite's +1.7% change. During this period, the Zacks Computers - IT Services industry, which BigBear.ai falls in, has gained 0.1%. The key question now is: What could be the stock's future direction?Although ...

If you are after the most undervalued AI penny stocks to buy in April, you have come to the right place. This article will explore several small-cap companies working on cutting-edge artificial intelligence technologies that could see explosive growth as AI continues its rapid advancement.AI has gone mainstream, with large language models like ChatGPT capturing the public’s imagination. Some smaller, under-the-radar companies are also making significant strides in the AI space. I feel that due to their tiny ...

Artificial intelligence (AI) and data company BigBear.ai (BBAI -2.19%) was on a roller-coaster ride over the past month. Shares surged on AI hype and news that AI chip leader Nvidia was buying stakes in emerging AI companies (it didn't buy a stake in BigBear.ai).Unfortunately, those gains evaporated after an earnings report that fell short of Wall Street's expectations. That leaves investors at a crossroads, trying to decide whether BigBear.ai's rise was just a fluke or if the stock is due for a rebound.Whi ...

BigBear.ai (BBAI -4.65%) has disappointed a lot of investors since it went public by merging with a special purpose acquisition company (SPAC) in December 2021. The data mining and analytics company's stock started trading at $9.84 on its first day and rose to an all-time high of $12.69 the following April, but now trades at about $2.BigBear.ai initially dazzled the bulls with rosy long-term estimates before it closed its merger. But like many other SPAC-backed companies, it missed those estimates by a mile ...

Companies Overview - Snowflake, Palantir, and BigBear.ai are competing in the data analytics sector, with Snowflake and Palantir being established players while BigBear.ai is a newer entrant [1] - Snowflake is known for its cloud-based platform and scalability, but its high valuation and dependence on a few large customers are concerns [5] - Palantir focuses on artificial intelligence and government contracts, but its opaque business model and reliance on government contracts raise questions about its long-term prospects [5] - BigBear.ai specializes in AI and machine learning solutions for government and commercial clients, with a lower valuation but significant risks due to its short operating history and lack of profitability [5] Valuation Metrics - Snowflake has a high price-to-sales (P/S) ratio of 18.6, reflecting investor optimism, while Palantir's P/S ratio is even higher at 24.1, suggesting potential overvaluation [2] - BigBear.ai has a more modest P/S ratio of 2.0, making it appear more affordable compared to its peers [2] - Snowflake and Palantir trade at triple-digit multiples to forward earnings estimates, with price-to-free cash flow ratios between 60 and 80, which are considered high and may deter value investors [2] Profitability and Growth Potential - BigBear.ai is not yet profitable, with only a single quarter of positive adjusted EBITDA and operating cash flows, and its trailing four-quarter results remain negative [3] - Snowflake has impressive historical and projected EPS growth, justifying its premium valuation to some extent [3] - Palantir shows decent growth but has not fully convinced investors of its ability to maintain momentum [3] - BigBear.ai's revenue growth slowed during the 2023 AI boom, while Snowflake and Palantir experienced robust topline gains [4] Investment Considerations - Snowflake may be a safer bet for investors seeking proven growth, despite its premium price [6] - Palantir could appeal to high-growth investors willing to take on more risk due to its intriguing technology and government connections [6] - BigBear.ai might attract speculative investors comfortable with higher uncertainty, but it needs to demonstrate sustained growth to gain broader investor interest [6] Conclusion - The decision to invest in BigBear.ai depends on individual risk tolerance and investment goals, with Snowflake and Palantir potentially offering more established alternatives [7]

This was a big week for artificial intelligence (AI) aficionados. The hot ticket was Nvidia's (NVDA 1.18%) GPU Technology Conference (GTC), which has been called the "Woodstock of AI." According to reports, some of the biggest names in technology were on hand while millions more joined the festivities online.CEO Jensen Huang gave the keynote address, which included a rundown of the company's latest AI-centric creations. Investors had plenty to digest, which weighed on many AI stocks throughout the week.With ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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. ...

When BigBear.ai (BBAI) went public by merging with a special purpose acquisition company (SPAC) in December 2021, it bore a striking resemblance to Palantir Technologies (PLTR -3.85%), which went public through a direct listing in September 2020. Both analytics companies helped government and enterprise customers aggregate data from disparate sources to make smarter decisions. BigBear.ai even integrated Palantir's tools into its own modules before its public debut. BigBear.ai's stock now trades at about $2, ...