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BigBear.ai - AI Stock Analysis
Analysis generated January 16, 2025
BigBear.ai is a tech-driven company specializing in artificial intelligence (AI) and machine learning solutions. The company provides data-driven insights and decision-making tools across various sectors, including defense, healthcare, and commercial enterprises. Their AI-powered platforms are designed to enhance efficiency and operational capabilities, offering scalable solutions to tackle complex challenges.
Fundamental Analysis
Revenue: BigBear.ai reported a revenue of $42 million for the last quarter. This is a 4.33% increase compared to the previous quarter, signaling short-term growth. Year-over-year, there is a substantial increase of 22.12%, indicating strong long-term performance.
Net Income: Unfortunately, the net income for the last quarter was $12 million, representing a decrease of 3.74% compared to the previous quarter. More concerning is the year-over-year decrease of 404.48%, suggesting significant financial challenges.
EBITDA: The EBITDA for the last quarter stood at $5.2 million, marking a marginal increase of 0.84% compared to the previous quarter. However, compared to the same quarter last year, EBITDA has plummeted by 154.92%, a troubling sign for the company's profitability.
Insider Trading: Recent insider selling can be interpreted as a bearish signal, suggesting that those closest to the company may not be entirely confident in its short-term prospects.
Technical Analysis
Stock Price: Currently trading at $4.15, the stock has risen by 38.80% in the last month, indicating a strong short-term trend. Year-over-year, the stock has soared by 133.15%, showcasing a robust long-term trajectory.
Moving Averages: The current 10-day Simple Moving Average (SMA10) is 3.40, slightly down from the previous SMA10 of 3.42. This minor decrease might hint at a potential downward trend.
Relative Strength Index (RSI): The RSI currently reads 39.7, placing it in a neutral condition, indicative of neither overbought nor oversold status.
Alternative Data Analysis
Job Postings and Employee Sentiment: The company has 75 open positions, a decrease of 11% over the past couple of months. This might indicate attempts to trim costs or improve margins, often not a positive sign for a company in growth mode. Employee sentiment remains neutral.
Customer Acquisition: The company has seen a significant uptick in its estimated website visitors, now at 160,000—a 193% increase in recent months. This trend is bullish as it indicates potential growth in customer acquisition.
Customer Engagement: On social media, the company has shown increased engagement with a 17% rise in Instagram followers to 710, and a 51% increase in Twitter followers to 3,300.
AI Score: According to AltIndex, BigBear.ai has an AI score of 64, suggesting a "buy" signal based on an amalgamation of fundamental, technical, and alternative data.
Conclusion and Recommendation
Taking into account the various facets of data analyzed, BigBear.ai presents a somewhat mixed bag. The positive revenue growth and increasing stock price signals are mitigated by troubling declines in net income and EBITDA. Insider selling also raises red flags, although alternative data points like increased web traffic and social media engagement are encouraging. The stock's AI score suggests a cautious "buy" signal, but investors should be mindful of the underlying financial challenges before committing.
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.
