BigBear.ai’s revenue dropped in the third quarter despite outperforming the market, falling short of Palantir Technologies’ success in AI-driven analytics. BigBear.ai, a government contractor, uses AI, machine learning, and cloud-based data analytics for federal solutions, with a market cap of $2.5 billion compared to Palantir’s $440 billion. In the third quarter, BigBear.ai reported a $33.1 million revenue, down 20% from a year ago, but managed a $2.5 million profit. The company has a backlog of $376 million and projects full-year revenue between $125 million and $140 million. Despite acquiring Ask Sage, a generative AI platform, BigBear.ai may not reach the same success as Palantir due to its customized solutions, making it a second-tier AI investment compared to more established companies.

Read more at Yahoo Finance: A Winning or Losing AI Investment Opportunity?