Burning success Palantir Technologies He explains that there is a legitimate market for artificial intelligence programs (AI) that can help institutions use their data and make better decisions. Bigbear.ai holders(NYSE: BBAI) A year was made in late 2021 through a merging process with a special purpose acquisition company, or SPAC.
Unfortunately, it was bad timing. Soon after, the stock market bubble that fed the interest rates has emerged zero percent. It was a few years for shareholders, but the arrow had momentum until the last market fluctuated by Bigbear.ai to nearly 80 % of its highest level.
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Is this an opportunity to purchase the decline before the stock is launched, or does the market tell investors to move away?
On the surface, Bigbear.ai looks an exciting inventory idea. The company program performs three basic functions: monitoring, guiding and controlling. Basically, Bigbear.AI cools the data, analyzes it for directions and notes, and displays it in a way that helps operators make decisions.
Bigbear.ai specializes in government requests, supply, health care and life sciences. The company gets many of its work from public agencies in the United States government. This concept is similar to the Entire, which has achieved great success since the release of the AIP platform in 2023.
But so far, investors are still waiting. Bigbear.ai’s revenues amounted to $ 155 million in 2022, $ 155 million in 2023, and $ 158 million last year. The administration expects sales ranging from $ 160 million to $ 180 million for 2025, which means that growth may be almost flat this year.
Pltr (TTM) revenue data by ycharts
Since 2022, the widespread interest in the artificial intelligence program has paid the growth of large revenues for Palantir and C3.AIAnother competitor. Bigbear.ai’s failure does not preach goodness. It has become fair to question the implementation of its business and whether its product provides enough value for others.
Bigbear.ai Financial is another issue. For example, the company ended 2024 with only $ 50.1 million in cash. Cash losses amounted to $ 49.2 million last year, so the administration may need to raise more money soon. The company owns about $ 200 million of long -term debt. Most of this is in the convertible bonds due in 2029, so although it is not an immediate problem, it increases the possibility that the administration collects cash by issuing shares.
BigBear.ai of cash and shallow pockets means that reducing the class is a great danger. The administration has already turned some of its debts into a storage to reduce its near financial position. In conjunction with stock -based compensation over the past few years, the number of reduced shares has doubled more than twice since 2022.
BBAI average suspended shares (quarterly) by Ycharts
Remember that the more the company’s problems, the worse for the shareholders. Reducing the shares of the shares from the upward trend by spreading revenues and profits more thin through the shareholders base. It is like cutting pizza into a lot of small slices. You will eat, but you will not like how much you get.
Bigbear.ai is trading a price rate of less than 4.0, making it one of the cheapest technology shares in the market. Sometimes low prices may be a chance to buy, but not always. The company’s inability to grow amid the strong demand for artificial intelligence, its disturbing public budget, and the dangerous risk of mitigating in the long run, all of the red flags. In other words, Bigbear.ai may be cheap inventory, but there are good reasons.
We hope that Bigbear.ai can take steps and create itself as the Thunderbolt INS that investors can raise enthusiastic. Until then, the process of selling the last stocks in the stock market is simply the nature that takes its path, mainly punishing the weak shares. In other place, investors are likely to search for safer alternatives to their governor.
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Justin Bob has no position in any of the mentioned shares. Motley Fool has positions in Palantir Technologies. Motley Fool C3.AI. Motley Fool has a disclosure policy.
A decrease of 80 %, should you buy a decrease on Bigbear.ai? It was originally published by Motley Fool
