Opinions
The Weekly Buzzing Stocks by Billy Kawasaki
BigBear.ai Holdings
BBAI-N
TOP PICK
Sep 18, 2025
Stock price when the opinion was issued
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Premium contentBigBear.ai Holdings, Inc. engages in data-driven decision dominance and advanced analytics that provide its customers with a competitive advantage in a world driven by data that is growing in terms of volume, variety, and velocity. The firm operationalizes artificial intelligence and machine learning at scale through its end-to-end data analytics platform. It deploys its observe, orient and dominate products to customers throughout the defense, intelligence, and commercial markets. The company was founded in 2020 and is headquartered in Columbia, MD. Social media mentions are up 138% in the past 24h.
BBAI provides AI 'decision intelligence' solutions for defense, national security, supply chain management, etc. It has government contracts which provide a steady and growing backlog, but it is small ($1.7B market cap), it is not yet profitable, and it is free cash flow negative. Sales growth is OK (high single-digits to low-double digits), and it trades at a fairly expensive valuation of 9.8X forward sales. We like its momentum, but it is a highly volatile stock with no positive free cash flows - we would be fairly cautious at this time.
In general, we prefer using percentage of portfolio, and for our model portfolios, we tend to initiate a starter position around a 1.0% to 1.5% weighting.
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Premium contentBigBear.ai is a prominent player in the artificial intelligence and analytics market, providing AI-powered solutions across various industries. The company focuses on data-driven decision-making and predictive analytics, offering advanced tools and insights for both governmental and commercial sectors. Given the increasing importance of AI and analytics in today’s world, BigBear.ai stands to benefit substantially from long-term industry trends. Social media mentions are up 11.8% in the past 24h.
BigBear.ai reported a revenue of 32M, which is a -6.6% change from the previous quarter. An increase in revenue typically indicates growing demand for the company's products or services. A decline in revenue can be concerning, as it might indicate reduced sales or challenges in the market. It's important to investigate further to understand the underlying causes. Social media mentions are up 7.9% in the past 24h.