Job Posts View All

Instagram Followers View All

Twitter Followers View All

BigBear.ai - AI Stock Analysis

Analysis generated January 4, 2025

BigBear.ai is a rapidly growing technology firm specializing in data analytics, artificial intelligence, and machine learning solutions. The company is renowned for its advanced algorithms and capabilities in predictive analytics, helping organizations to make informed decisions through insights derived from complex data sets. As a player in the AI space, BigBear.ai is positioned at the core of a market experiencing increasing adoption and investment.

Fundamental Analysis

The latest financial data for BigBear.ai showcases some promising indicators along with areas requiring caution. The revenue for the last quarter was reported at $42M, marking a 4.33% increase from the previous quarter and a substantial 22.12% year-over-year growth. This consistent rise is a positively bullish sign indicating strong market demand and sound management practices.

However, the net income for the last quarter stood at $12M, down by 3.74% from the quarter before it, and alarmingly, a massive 404.48% decrease year-over-year. This dramatic fall highlights profitability issues and raises concerns about operational efficiencies and cost management. Similarly, the EBITDA reported was $5.2M, showing a slight increase of 0.84% quarter-over-quarter but a worrying decrease of 154.92% year-over-year.

More importantly, insider trading activities have shown a trend of company insiders selling their stocks recently. This activity often signals bearish sentiment from those with the most intimate knowledge of the company's future prospects.

Technical Analysis

Today's stock price of BigBear.ai stands at $4.53, representing an impressive 73.56% increase from a month ago and a commendable 133.51% rise from a year ago, suggesting continued bullish momentum in both the short term and long term.

The current Simple Moving Average (SMA10) is $4.40, up from the previous SMA10 of $4.32, indicating a potential upward price movement trend. The Relative Strength Index (RSI) is at 41.1, reflecting a neutral market condition that does not indicate either an overbought or oversold status.

Alternative Data Analysis

An examination of alternative data reveals mixed signals. On the employment front, BigBear.ai has reduced its job postings by 11% in the past couple of months, suggesting a possible focus on improving margins or cost-cutting, which might not be ideal for a company in a growth phase. The employee sentiment remains neutral, not indicative of strong confidence but also not of discontent.

Contrarily, customer acquisition and engagement indicators are much more positive. BigBear.ai's website visitors have increased by 28% to a total of 82,000 visitors, pointing to a growing interest and potential customer base. Social media metrics further boost this view, with a 16% rise in Instagram followers (now at 700) and a 45% increase in Twitter followers (now at 3,100). These figures hint at a growing brand presence and improved customer engagement.

The AltIndex AI score for BigBear.ai stands at 63, which signals a 'buy' recommendation based on a blend of fundamental, technical, and alternative data.

Conclusion and Recommendation

In summarizing the stock analysis for BigBear.ai, we observe a company experiencing significant growth in revenue and market presence despite concerns about profitability and internal cost management. The technical indicators suggest bullish trends, and the alternative data reveals broader recognition and interest in the company.

The positive AI score of 63 further bolsters the case for considering BigBear.ai as a potential investment opportunity. However, prospective investors should remain cognizant of the underlying challenges, particularly around net income and internal changes. Therefore, a cautious yet optimistic approach should be adopted when assessing BigBear.ai for long-term investment.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.