A 24 % decrease, should you buy a decrease on Bigbear.ai?

• The company’s share price decreased as it struggles to achieve revenue growth.

• The company is not profitable despite the best efforts of multiple executives.

• The artificial intelligence analysis market is still promising.

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Many companies that sell artificial intelligence services (AI) have seen their prices over the past two years. Artificial Intelligence Data Analysis Company Bigbear.ai (NYSE: BBAI) She witnessed great fluctuations, but also benefited from the ups of the upscale market.

The company’s share price has increased by 142 % over the past 12 months, which reduced the return of 11 % of S & P 500. However, much of the Earth has been lost recently with a 24 % decrease in the past three months.

There is no doubt that the last decline has some investors wondering whether this is a great time to buy Bigbear.ai stocks Or a warning sign to stay away. The company still has a lot to prove, and here are three reasons that investors should leave these shares of artificial intelligence alone at the present time.

Small companies that take advantage of this market and students such as artificial intelligence should suffer from rapid sales growth. However, Bigbear managed to increase its revenues by only 5 % on an annual basis to $ 34.8 million in the last quarter.

Unfortunately, this appears to be a company style. The revenue was flat in 2023 and only 2 % rose in 2024. This year, the administration says sales may increase by 7 % (in the middle of their directives).

This is the unnecessary growth for such a young artificial intelligence company. For comparison, artificial intelligence data analysis company Palantir Technologies 29 % sales last year grew to $ 2.9 billion.

High growth companies usually face a lot of upper expansion, and investors hope that momentum will eventually lead to profits. But with Bigbear.ai, sales have grown for years.

Bigbear.ai mentioned modified Ebitda A loss of $ 7.0 million in the first quarter, which was worse than its $ 1.6 million loss in the year.

The administration said that the costs are primarily driven by increasing research and development expenses as well as repeated costs for sale, public, and administrative (SG & A). Either way, the company cannot bear the costs of these expenses in sales.

For investors who hope that profits will follow the same pattern in which astronomical stock prices return over the past two years, it is likely to be very long.

This may not be the typical reason that investors should stay away from the company, but it certainly raises some red flags. Leadership is very important for the company’s success, so it is worrying about the vision of Bigbear.ai under the third CEO since it became public in 2021.