Could This Under the Radar Artificial Intelligence AI Defense Company Be the.png
Palantir’s Foundry and Gotham platforms specialize in Amnesty International Operating Systems, and the American army is one of the company’s largest customers.
Recent budget changes in the Ministry of Defense indicate that investment in infrastructure and artificial intelligence software services are high.
BigBear.ai is a smaller defense company than artificial intelligence that some investors hope to witness an increase in Palantir stock prices.
10 shares we love better than Bigbear.ai ›
Palantir Technologies The highest performance was in S & P 500 and Nasdaq-100 During the first half of 2025, with 80 % shares increased during the first six months of the year – and by 427 % over the past 12 months – Palantir has helped push a lot of attention to the intelligence intelligence intersection (AI) and defense.
Palantir is far from the only company that seeks to disrupt the defense technology. An unknown competitor to the company Bigbear.ai(NYSE: BBAI)And whose shares increased by 357 % during the past year.
Can Bigbear.ai appear as the following Palantir? Reading to find out that.
Bigbear.ai fluctuations to now mimics the arrow row. Initially, the shares increased shortly after President Donald Trump and the subsequent announcement of the Stargate project – an infrastructure initiative aimed at investing $ 500 billion in artificial intelligence projects until 2029.
BBAI data by ycharts
However, these early gains fell after the Pentagon plans to reduce its budget by 8 % annually.
While the low spending from the Ministry of Defense (DOD) was initially seen as a major blow to contractors such as Palantir and Bigbear.ai, the trends described above indicate that the shares have flourished sharply-which means that the sales in February may be exaggerated. Why this?
In my eyes, one of the main shareholders in the defense shares came after Defense Minister Beit Higseth announced his intentions to double a strategy called the SWP.
In fact, DOD budget discounts focus on areas that are unnecessary or ineffective. For example, the Pentagon released billions in capital by reducing spending with consulting companies such as Bose Allen Hamiltonand ToneDeloitte. In addition, the contract revolves around the human resource software system runs it Oracle It was also cut.
Under SWP, it appears that the Ministry of Defense is actually looking to liberalize capital to double the initiatives that focus on technology and identify sellers who can actually deal with the advanced workflow in the Pentagon.
With a lot of opportunities to seize, this optimistic investors may see as the back wind of Bigbear.ai. This logic is not far from the base.
Bigbear.ai CEO is Kevin Mcalanan, a former government official and has close links with the Trump administration. McLeenan’s strategic relations within the government may have DOD’s focus on working with leading software service providers some investors who buy the idea that Bigbear.ai will not fly under the radar for a long longer period.
Photo source: Getty Images.
The graph below reduces revenues, margin and net income for Bigbear.ai during the past year. With only $ 160 million in sales, the company tends to generate inconsistent total margins – which reaches less than 30 %. Moreover, with a somewhat small sales base and an impressive margin definition file, it is not surprising to see bigbear.ai last loss.
BBA (TTM) revenue data by ycharts
In comparison, the Baltreer achieved $ 487 million of government revenues during the first quarter of 2025. In other words, a government in the government generates approximately three times the revenue in one quarter by Bigbear.ai in a full year. Moreover, the total number of margins in the interity hovering about 80 %, while the company’s net income over the past 12 months has been more than $ 570 million.
Currently, Bigbear.ai is traded by a price rate (P/S) about 11. While this may seem “cheap” compared to the P/S of 120 PALATIR, there is a reason to vary in evaluation between AI’s defense contractors.
It is proud to fly in high -growth public and private sector companies that require strong profit margins. On the contrary, Bigbear.ai will have a difficult time as long as it continues to combustit through piles of money.
I will not only pass the Bigbear.ai shares, but I also do not see the company has become the following infection. Palantir in its own bond in the field of defense technology, and I do not see Bigbear.ai as a huge competitor.
Before buying shares in Bigbear.ai, think about this:
the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … and Bigbear.ai was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Netflix This list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation, You will have $ 652,133!* Or when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 1,056,790 dollars!
Now, it is worth noting Stock consultant The average total return is 1048%-Magic outstanding in the market compared to 180 % on the S&P 500. Don’t miss the latest 10 best list, available when joining Stock consultant.
See the ten stocks »
*The stock consultant dates back from July 15, 2025
Adam Sepataco has sites in the techniques of interia. Motley Fool has positions in and recommended ACCCENTERE PLC laboratories, Oracle and Palantir Technologies. Motley Fool has a disclosure policy.
Could this be the next Palantir Defense Defense Company? It was originally published by Motley Fool
