BigBear.ai Holdings: Analyzing the Investment Prospects and Risks for Investors
BigBear.ai Investment Analysis
This small-cap artificial intelligence play, BigBear.ai, has some competitive strengths in its niche, but is that enough? There's no denying the advent of artificial intelligence (AI) has gotten investors' attention. AI hardware is Nvidia's breadwinning business now, and it's currently Microsoft's top growth driver.
A Mixed Picture
Like C3.ai, BigBear.ai's platforms allow enterprises and government entities to manage themselves more effectively through the use of artificial intelligence. Most of the company's revenue stems from government contracts, including military customers such as the U.S. Air Force.
Revenue was flat last year at $155 million. And while management is guiding for stronger growth in 2024 with revenue of $195 million to $215 million, much of it comes from BigBear.ai's recent acquisition. Analysts expect top-line growth to decelerate again in 2025.
First, it remains unprofitable and is expected to remain in the red through at least through 2027.
BigBear.ai stock probably isn't right for you.
- From a risk-versus-reward perspective, though, BigBear.ai doesn't have the growth or positioning to stand out as a top choice for investors looking for exposure to AI.
- There are far more promising options from this industry that don't require investors to stomach the volatility BigBear.ai has endured in 2024 alone.
Before you buy stock in BigBear.ai, consider this:
- The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BigBear.ai wasn’t one of them.
- The 10 stocks that made the cut could produce monster returns in the coming years.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.