BigBear.ai: A Closer Look at Its Growth Story and Potential to Transform into a Tech Giant

Could BigBear.ai Become the Next Microsoft?

The enterprise AI software company might recover over the next few years. BigBear.ai (NYSE: BBAI) has disappointed a lot of investors since its public debut on Dec. 8, 2021. The enterprise AI software company went public by merging with a special purpose acquisition company (SPAC), and its stock opened at $9.84 on its first day as a combined company. But today, it's only worth about $1.50 a share.

What does BigBear.ai do?

BigBear.ai develops data mining and analytics tools that are used to aggregate information from disparate sources. These modules, which can be plugged into edge networking applications, can help organizations make faster data-driven decisions. Prior to its public debut, it integrated Palantir's tools into its own Observe, Orient, and Dominate modules.

Why BigBear.ai won't become the next Microsoft

To evolve into the next Microsoft, BigBear.ai will need to stabilize its business, expand its portfolio, and turn a profit. Unless it can check those boxes, investors will dismiss it as another struggling tech company that can't carve out its own niche. Even if BigBear.ai successfully scales up its business, it probably won't dominate the data mining and analytics market in the same way Microsoft conquered its operating system and productivity software markets.

Based on these facts, it seems doubtful that BigBear.ai will ever become a trillion-dollar tech titan like Microsoft. However, it could still be an undervalued growth play if it finally gets its act together over the next few years.