Key Points BigBear bragged about winning a Navy contract earlier in the week. The news helped push BigBear stock to its highest price in months. Lack of revenue growth, however, is more important to investors than just good PR. 10 stocks we like better than BigBear.ai › Shares of BigBear.ai (NYSE: BBAI), which uses artificial intelligence (AI) to help crunch large piles of data for its customers, tumbled in afternoon trading Thursday -- on no obvious news. As of 1:55 p.m. ET, the stock is down 7 ...

Key Points Like the name suggests, BigBear.ai is an AI tech stock and cruncher of big data. BigBear has no profits -- and its revenue is growing at a snail's pace. 10 stocks we like better than BigBear.ai › Shares of BigBear.ai (NYSE: BBAI), which uses artificial intelligence (AI) to crunch large amounts of data for its customers, roared ahead nearly 13% in early trading Tuesday before retracing -- all on no obvious news. As of 11:25 a.m. ET, BigBear stock is still up 10.6%. Image source: Getty I ...

Core Viewpoint - BigBear.ai has an attractive valuation compared to Palantir Technologies, but its recent performance raises concerns about its viability as an investment opportunity [11][12]. Company Overview - BigBear.ai is based in Virginia and focuses heavily on federal government contracts, providing AI solutions for defense and intelligence agencies [3]. - The company has a significant contract worth $165 million with the U.S. Army to modernize its platforms using AI [3]. Recent Developments - BigBear.ai's stock has increased by 20% this year but has dropped 28% in the last month following a disappointing earnings report [2]. - The company reported a revenue decrease of 18% year-over-year, with sales of $32.5 million in the second quarter [7]. - A net loss of $228.6 million was reported, a significant increase from a loss of $14.4 million in Q2 2024, attributed to non-cash changes in derivative liabilities and goodwill impairment [8]. Market Opportunities - BigBear.ai sees a $70 billion opportunity from increased funding for U.S. Customs and Border Protection and a $673 million opportunity from biometric border control funding [5]. - The company is expanding its international efforts, including work with the United Arab Emirates [6]. Comparison with Competitors - In contrast to Palantir, which reported a revenue growth of 48% in the same quarter, BigBear.ai's performance has been relatively flat [9]. - BigBear.ai's price-to-sales ratio is over 9, significantly lower than Palantir's ratio of 117, indicating a more attractive valuation [11]. Concerns - BigBear.ai has withdrawn its adjusted EBITDA guidance due to uncertainties regarding Army programs and anticipated growth investment spending [9]. - The company is overly dependent on its large Army contract, raising concerns about its ability to sustain operations if that contract is affected [12].