Core Viewpoint - BigBear.ai is a small-cap AI company with a market cap of less than $3 billion, attracting investor interest due to limited investment opportunities in this sector [1][2]. Company Overview - BigBear.ai focuses on providing custom AI solutions primarily to government and government-adjacent clients, with its largest contract being with the U.S. Army for the Global Force Information Management-Objective Environment (GFIM-OE) system [4]. - The company has also made strides in airport security with its facial recognition software, although its applications are limited [6]. Recent Developments - BigBear.ai recently acquired Ask Sage, a generative AI platform aimed at national security, which adds a recurring revenue stream of approximately $25 million to its business [11]. - The acquisition is seen as a strategic move to transition from a consulting software company to a platform software company, potentially improving its gross margins [10][11]. Financial Performance - BigBear.ai's revenue has decreased by 20% year-over-year in Q3 2025, raising concerns about its growth potential during a time of high demand for AI solutions [13][14]. - The company generated nearly $145 million in revenue over the past 12 months, but the negative growth trend is a significant red flag for investors [11][14]. Valuation Concerns - The stock trades at 14 times sales, which may appear attractive for an AI software company; however, typical valuations for software stocks range from 10 to 20 times sales, requiring an 80% gross margin [16]. - Given its low gross margin and negative revenue growth, BigBear.ai's valuation may be more aligned with companies like Spotify, which trades at about 6 times sales [16][17].

Core Insights - The rise of artificial intelligence (AI) has significantly boosted the stock values of tech companies, particularly Palantir Technologies Inc. (PLTR) and BigBear.ai Holdings, Inc. (BBAI), with respective stock gains of 156.7% and 35.5% in 2025 [1][2] Group 1: Palantir Technologies Inc. (PLTR) - Palantir has transitioned from relying solely on government contracts to gaining traction with U.S. commercial clients, leading to substantial revenue growth [4][6] - For Q3, Palantir reported revenues of $1.18 billion, reflecting a 63% year-over-year increase and an 18% quarter-over-quarter increase [4][8] - U.S. commercial revenue reached $397 million, marking a 121% year-over-year increase, while government revenue was $486 million, up 52% year-over-year [5][8] - The company raised its fourth-quarter sales guidance to between $1.327 billion and $1.331 billion, and for the full fiscal year to between $4.396 billion and $4.400 billion [6] - Palantir expects a solid earnings growth rate of 42.5% for the next year, driven by an expanding U.S. commercial client base and increased government contracts [7] Group 2: BigBear.ai Holdings, Inc. (BBAI) - BigBear.ai's stock performance was initially boosted by favorable government policies but faced challenges due to federal spending cuts, resulting in a 20% year-over-year revenue decline to $33.1 million in Q3 [9] - The company has announced a definitive deal to acquire Ask Sage for $250 million, which is expected to enhance its offerings in the AI defense sector [10] - BigBear.ai has raised its full-year sales outlook to between $125 million and $140 million, indicating a positive shift in revenue expectations [11] - The company holds a strong cash position of $456.6 million as of September 30, 2025, providing ample resources for growth initiatives [11] - BigBear.ai's projected earnings growth rate for the next year is an impressive 73.1% [11] Group 3: Market Position - Both Palantir and BigBear.ai are ranked 2 (Buy) by Zacks, indicating a favorable outlook for investors [12]

Key Points BigBear.ai's revenue has been declining even as AI spending is booming. The company seems to be hoping its new Ask Sage generative AI acquisition will be a game changer. Acquisitions are risky, and BigBear is planning more. 10 stocks we like better than BigBear.ai › Who doesn't love bears? They're big and furry and ... well, incredibly dangerous. Just like a real bear, artificial intelligence (AI) data analytics company BigBear.ai (NYSE: BBAI) has charmed investors: Its stock price i ...

Key Takeaways NVDA shares surged 36.6% this year, driven by AI demand for CUDA software and Blackwell and H200 chips. Micron expects Q2 FY26 revenue of $18.3B-$19.1B as AI-driven demand lifts high-bandwidth memory chips.BigBear.ai plans to buy Ask Sage for $250M, targeting $125M-$140M in full-year sales.Shares of the most sought-after tech stock on Wall Street, NVIDIA Corporation (NVDA) , have surged 36.6% this year amid the artificial intelligence (AI) boom. Ongoing demand for NVIDIA’s CUDA software platfo ...

Key Takeaways BigBear.ai posted Q3 revenues of $33.1M, with a backlog of $376M supporting multi-year visibility.A $25M ARR acquisition of Ask Sage boosts BBAI's AI edge in secure government applications.BBAI stock surged 96.3% in a year, now trades at a forward P/S of 15.89, above industry peers.BigBear.ai Holdings, Inc. (BBAI) is increasingly being viewed as a potential small-cap AI turnaround as it reshapes its business around higher-value, mission-critical applications and strengthens its balance sheet. ...

Key Takeaways BigBear.ai is acquiring Ask Sage to expand its agentic AI offerings for defense and secure environments.BBAI's agentic AI aligns with defense demands for secure, auditable systems in regulated settings.BBAI stock rose 73.2% in a year and trades at a discount, with narrowing EPS losses projected through 2026.As defense agencies accelerate digital modernization, the focus is shifting from standalone analytics toward agentic AI—systems that not only analyze data but autonomously assist, coordinat ...

Core Insights - The artificial intelligence investment boom is shifting capital towards smaller, higher-risk AI specialists like BigBear.ai Holdings (BBAI) and SoundHound AI (SOUN), both of which are gaining investor attention for their unique approaches to AI deployment [1][2]. Company Overview - BigBear.ai focuses on defense and government markets, providing secure decision intelligence, while SoundHound specializes in voice and conversational AI solutions across various commercial sectors [2][3]. - Both companies are seen as opportunities for investors looking for exposure to AI adoption beyond larger tech firms [1][2]. Financial Performance - BigBear.ai's revenue declined by 20% year-over-year to $33.1 million in Q3 2025, with a gross margin decrease to 22.4% and an adjusted EBITDA loss of $9.4 million [5][9]. - In contrast, SoundHound reported a 68% year-over-year revenue growth to $42 million in Q3 2025, with non-GAAP gross margins of 59.3% [11][12]. Strategic Developments - BigBear.ai ended Q3 2025 with $456.6 million in cash, enabling aggressive growth strategies, including the acquisition of Ask Sage, expected to generate $25 million in annual recurring revenue in 2025 [6][7]. - SoundHound's diversified customer base and strong operational momentum contrast with BigBear.ai's government-heavy exposure, but it faces challenges with large GAAP net losses and ongoing profitability issues [10][13]. Market Positioning - BigBear.ai is building a vertically integrated AI platform for defense and regulated markets, while SoundHound focuses on horizontal enterprise adoption [8][9]. - BigBear.ai's backlog stood at $376 million at the end of Q3, providing medium-term revenue visibility [8]. Stock Performance - Over the past year, BigBear.ai stock surged 153.7%, outperforming the broader technology sector and the S&P 500, while SoundHound stock declined by 10.6% [14][15]. - BigBear.ai trades at a forward price-to-sales ratio of 17.23X, while SoundHound trades at a higher 21.84X, reflecting differing growth expectations [17][18]. Earnings Estimates - BigBear.ai's earnings outlook has improved, with the consensus estimate for its 2025 loss per share narrowing to 93 cents from $1.10 [19]. - SoundHound's consensus estimate for its 2025 loss per share widened to 13 cents from 9 cents, indicating mixed revisions [24]. Investment Outlook - BigBear.ai is seen as having a clearer path to differentiation and long-term growth potential, while SoundHound faces a more challenging risk-reward balance due to elevated losses and valuation concerns [26].

Core Insights - NVIDIA has experienced a 36.8% increase in shares this year, while BigBear.ai has surged by 48.5%, raising questions about future performance comparisons between the two companies [1] Group 1: NVIDIA - NVIDIA forecasts global data center capital expenditures to reach $3 trillion to $4 trillion annually by 2030, presenting significant sales opportunities for the company [2] - The company reported a 62% year-over-year revenue increase for fiscal Q3 2026, reaching $57 billion, with expectations of approximately $65 billion in fiscal Q4 2026 revenues [3][10] - NVIDIA has returned $37 billion to shareholders through dividends and share buybacks, indicating strong financial health and a competitive position in the AI hardware market [4] Group 2: BigBear.ai - BigBear.ai faced a 20% decline in third-quarter revenues to $33.1 million due to federal funding cuts, following an 18% decrease in second-quarter revenues [5] - The company has acquired Ask Sage for $250 million, which is expected to enhance revenue growth by integrating a secure AI platform for regulated sectors [6][7] - BigBear.ai maintains a strong cash position of $456.6 million as of September 30, 2025, which supports operational scaling and potential revenue growth from increased government spending [8] Group 3: Comparative Outlook - Both NVIDIA and BigBear.ai are positioned for growth, with NVIDIA benefiting from high demand for its chips and strong financials, while BigBear.ai relies on the Ask Sage acquisition and potential government spending increases [9] - BigBear.ai's profitability remains a concern, as its reported net income of $2.5 million in Q3 was due to non-cash adjustments, contrasting with NVIDIA's robust revenue gains [10] - Analysts project a short-term price target of $252.67 for NVIDIA, indicating a 36.6% increase, while BigBear.ai's target is $6.67, reflecting a slight decline [11][13]

Core Viewpoint - SoundHound AI is positioned to outperform BigBear.ai in 2026 despite its stock underperformance in 2025, due to strong operational performance and revenue growth [2][12][13] Summary by Sections SoundHound AI - SoundHound AI's stock decreased by 37% in 2025, while its revenue more than doubled in the first nine months of the year, with a year-over-year growth of 68% in Q3 [2] - The company improved its gross margin from 39% in Q2 to 42.6% in Q3, with adjusted gross margin rising from 58.4% to 59.2% [3] - SoundHound is focusing on agentic AI, leveraging its acquisition of Amelia to create voice-powered AI agents, which is expected to drive growth in 2026 [5][6] - The company is nearing EBITDA profitability and has a market cap of $5 billion, with a current stock price of $12.76 [4][5] BigBear.ai - BigBear.ai's stock increased by 53% in 2025, but it has seen a revenue decline, with a 20% drop in sales last quarter [2][11] - The company is pursuing growth through its pending acquisition of Ask Sage, which offers a rapidly growing AI platform for secure AI model deployment [10] - BigBear.ai's gross margin is low at 22.4%, down from 25.9% a year ago, primarily due to the need for on-site engineers for government projects [3][8] - The company has a market cap of $3 billion, with a current stock price of $6.82, and trades at about 15 times 2026 analyst estimates on a forward price-to-sales ratio [9][11] Comparative Analysis - SoundHound has shown better operational performance and revenue growth compared to BigBear.ai, which is struggling with declining revenue [2][12] - Despite BigBear.ai's stock performing better in 2025, SoundHound is considered to have a larger growth opportunity in the agentic AI space due to its voice-first approach [12][13]

BigBear.ai recently made a genius acquisition.BigBear.ai (BBAI +15.33%) is a fairly popular AI investment pick, as it's one of the few options available in the market that sells an application of AI. It's also a relatively small business with a market cap of less than $3 billion. This gives it massive growth potential if its offerings become mainstream.Is BigBear.ai a winning artificial intelligence pick? Or are there better options out there? Let's find out. BigBear.ai is focused on government businessBigB ...