The hot artificial intelligence market (AI) has generated a number of artificial intelligence shares. One of these is Bigbear.ai(NYSE: BBAI).
The company’s share price has increased by more than 200 % over the past 12 months until June 18. The stock recorded the highest level in 52 weeks at $ 10.36 in February after President Donald Trump announced Stargate projectWhich aims to invest billions of dollars in the artificial intelligence sector.
Since then, Bigbear.ai stock has decreased by more than 50 % of its peak. Is this an opportunity to raise the company’s shares at a cheap price?
Photo source: Getty Images.
The convergence of factors has decreased shares in Bigbear.ai this year. One of them is Wall Street’s concerns about the unpredictable macroeconomic environment, which exacerbated the Trump administration Tariff.
Moreover, the federal government reduces budgets. This is concerned because Bigbear.AI delivers artificial intelligence solutions focusing on national security and infrastructure. Thus, the largest part of the company’s revenue comes from federal government contracts.
In addition to this mix, in March, Bigbear.ai revealed material weakness in its internal controls of financial reports, which contributes to the decrease in the company’s share prices. As a result, the company has reclassified financial statements in the past few years. While financial director Julie Bever left in June.
This change was not the only leadership in 2025. In January, the new CEO, Kevin Mcalinan, who held the position of Acting Secretary of the Ministry of Internal Security during the first term of President Trump.
Leading changes in Bigbear.ai may be a good -term result. The McLeenan experience with the former Trump administration can help Bigbear.ai to survive in government budget discounts.
In addition, under the former CEO, the company decreased to its goal in 2024 to achieve at least $ 165 million in sales, reaching $ 158.2 million last year. With MCALEANAN, Bigbear.ai may meet the goal of its entire 2025 revenue, which ranges between 160 million dollars and 180 million dollars. He will have to succeed in winning the confidence of the shareholders in his leadership.
It is too early to know if McLeenan can deliver it, since he only has the first quarter under his belt. Bigbear.ai brought 34.8 million dollars in the sales of the first quarter, an increase of 5 % on an annual basis.
However, the company’s public budget includes a large part of the debt. Of the $ 198.5 million of the total obligations of the first quarter, it was $ 101.4 million debt. The total assets Q1 of 396.3 million dollars, with $ 107.6 million, in cash and its equivalent.
Moreover, although sales grow on an annual basis, bigbear.ai is unbroken. Q1 came out with a net loss of $ 62 million.
It is not uncommon for technology companies to work in losing, but in these cases, you want to see sales grow quickly. With a 5 % increase on an annual basis in the revenue of the first quarter, Bigbear.ai does not achieve strong growth, especially for the hot field of artificial intelligence. This raises questions about the company’s ability to capture customers, not to mention profitability in the end.
Bigbear.AI shares is another factor that must be taken into account. The percentage of the selling price (P/S) is useful for this purpose, as it measures the amount of investors to pay for each dollar.
This scale is commonly used with unbelieving companies. His comparison with the leader of the artificial intelligence NafidiaBesides C3.AIA competitor also works in the government intelligence sector, helps in understanding the Bigbear.AI share.
The BigBear.ai chart is displayed by P/S is the lowest artificial intelligence companies, and it decreases dramatically from where it was in February. This indicates that Bigbear.ai shares estimate an attractive value.
However, NVIDIA and C3.AI guaranteed higher assessments due to their work. For example, NVIDIA revenues increased by 69 % year on an annual basis to $ 44.1 billion in Q1, which ended to April 27.
The growth of artificial intelligence revenues in Bigbear.ai, and the factors that led to the decrease in stock prices this year means that investing in the company is a risk fraught. As a result, it is better to stop the purchase. Instead, see her work during the next few quarters to see if he could boost sales before reviewing the Bigbear.ai stock.
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 whenNetflixThis list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation,You will have 664,089 dollars! Or when NafidiaThis list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation,You will have 881,731 dollars!
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*The stock consultant dates back from June 9, 2025
Robert Eiskoiredo He has positions in C3.AI and NVIDIA. Motley is a lie that has positions in and recommends NVIDIA. Motley Fool C3.AI. Motley deception has Disclosure.
