From Nasdaq: 2025-04-11 11:15:00

BigBear.ai Holdings, Inc. (BBAI) stock has dropped 13.2% in the past month, performing below the Computers – IT Services industry and Computer & Technology sector. Despite a strong 2024, the company reported a wider-than-expected net loss of $108 million in Q4 2024, affecting investor sentiment.

The company’s Q4 performance was impacted by non-cash charges, leading to a net loss of $108 million despite a revenue increase to $43.8 million. Operating expenses rose, resulting in lower adjusted EBITDA. BigBear.ai faces challenges in government markets due to funding uncertainties.

Although facing headwinds, BigBear.ai is focused on long-term growth, evident in a backlog increase to $418 million and strategic acquisitions like Pangiam. Collaborations with industry leaders like Amazon, Palantir, and Autodesk showcase the company’s AI solutions’ demand and potential.

Estimates show a bearish trend for BBAI stock, with the 2025 loss per share widening to 21 cents. While the company has made strides in partnerships and backlog growth, near-term concerns like widening losses, negative EBITDA expectations, and uncertain government contracts pose risks for investors.

Despite promising partnerships and growth potential, BigBear.ai’s financial instability and short-term challenges make it a sell at this time. The stock’s valuation is stretched, and the outlook remains uncertain, leading to a Zacks Rank #4 (Sell) recommendation. Investors should consider these factors before investing in BBAI stock.



Read more at Nasdaq: BigBear.ai Stock Plunges 13% in a Month: Too Risky Even at a Discount?