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Sunday, 29 June 2025
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Is BigBear.ai Stock a Buy Now?

Is BigBear.ai Stock a Buy Now?

Hot Artificial Intelligence (AI) Market has given rise to several high-up AI shares. One of them is Bigbear.ai (NYSE: BBAI),

After the announcement of President Donald Trump, the company’s share price at a 52 -week high in February exceeded the last 12 months. Project StargateThe purpose of which is to invest billions of dollars in the AI ​​sector.

Now to invest $ 1,000? Our analyst team only revealed what they believe 10 best stock To buy now. continue “

Since then, bigbear.ai stock is more than 50% from its peak. Does it offer an opportunity to scoop the company shares for cheap?

Image Source: Getty Image.

Why Bigbear.ai’s shares decline

This year, the confluence of factors declined in Bigbear.ai Stock. A wall street concerns are about the unexpected macroeconomic environment, which is provoked by the Trump administration Tariff approach,

At its top, the federal government is cutting the budget. This is worrying because Bigbear.ai provides AI solutions concentrated around national security and infrastructure. As a result, a large part of the company’s revenue comes from the contracts of the federal government.

Adding this mixture, in March, Bigbear.ai revealed the weakness of a material in its internal controls for financial reporting, contributing to the decline in the company’s share price. As a result, the company restored the financial statements of the last few years. While being unrelated, CFO Julie Peer departed in June.

This was not the only leadership change of 2025. In January, Bigbear.ai received a new CEO Kevin McLeenn, who served as the Acting Secretary of the US Homeland Security during President Trump’s first term.

Financial photo of bigbear.ai

Changes in the leadership of Bigbear.ai can be a good result in a long time. McClen’s experience with the previous Trump administration can help Bigbear.ai to avoid cutting the government budget.

In addition, under the previous CEO, the company decreased to its 2024 target, leaving the sales at least $ 165 million, which was $ 158.2 million last year. With Mcaleenan handling, perhaps Bigbear.Ai can meet its 2025 full-year revenue target, which is between $ 160 million and $ 180 million. They will have to succeed in winning the shareholder confidence in their leadership.

It is too early to explain whether McLeenn can distribute, as it only has the first quarter under his belt. Bigbear.ai Q1 brought sales in $ 34.8 million, 5% year-to-year growth.

However, the company’s Balance letter A large part of the loan is included. In total Q1 liabilities, it had a $ 101.4 million loan in $ 198.5 million. Q1 Total assets were 396.3 million in cash and counterparts with $ 107.6 million.

Also, despite the year-on-year sales growth, bigbear.ai is not beneficial. It came out of Q1 with a net loss of $ 62 million.

Deciding whether to buy bigbear.ai stock

It’s not uncommon Technical companies To work in a loss, but in these cases, you want to see sales growing rapidly. Q1 With only 5% year-on-year increase in revenue, bigbear.ai is not getting strong growth, especially for the warm area of ​​artificial intelligence. This questions the company’s ability to catch customers, eventually gains profitability.

The stock valuation of Bigbear.ai is another factor to consider. Price-to-sell (P/s) Ratio is useful for this purpose, as it measures how much investors are ready to pay for every dollar revenue.

This metric is usually used with companies that are not profitable. Compare this with Artificial Intelligence Leader Nvidiaas well as C3.aiA contestant is also working in the AI ​​sector, helps in understanding the share price evaluation of Bigbear.ai.

Babai PS Ratio Chart

Data by Ycharts,

Chart Bigbear.ai’s P/s Multiple is the lowest among three AI companies, and it is far below where it was in February. It states that bigbear.ai stocks are attractively given importance.

However, NVIDIA and C3.AI make high evaluation due to their commercial performance. For example, NVIDIA’s revenue increased by 69% to $ 44.1 billion in its fiscal Q1, ending on 27 April. Meanwhile, the C3.Ai’s fiscal fiscal refreshed at $ 108.7 million in the fourth quarter, on April 30, represented an increase of 26% year-year.

Averaged AI revenue of Bigbear.ai AI revenue growth, loan, and its share falls this year means factors are risky to invest in the company. As a result, it is best to buy. Instead, look at its commercial performance in the next few quarters whether it can strengthen sales before rethinking Bigbear.ai Stock.

Should you currently invest $ 1,000 in Bigbear.ai?

Consider that before you buy stock in bigbear.ai:

Micker Flower Stock Advisor The analyst team identified what they believe 10 best stock For investors now to buy … and Bigbear.ai was not one of them. Cutting 10 stocks may produce demons returns in the coming years.

When to consider Netflix This list was made on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation, You will have $ 664,089, Or when Nvidia This list was made on 15 April 2005 … If you have invested $ 1,000 at the time of our recommendation, You will have $ 881,731,

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*Stock advisor returns by June 9, 2025

Robert Izquierdo C3.Aai and NVIDIA are the situation. The micle flower has a position and recommends Nvidia. The micle flower recommended C3.AI. Motley is near the flower Disclosure policy,

The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.

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