Does This Recent Acquisition Make BigBear.ai Stock a Good Buy?

Some investors are hopeful that data analytics company BigBear.ai (NYSE: BBAI) can become the next Palantir Technologies. The problem is that the numbers don't back up that notion -- not yet, anyway. BigBear.ai isn't anywhere near turning a profit, and its top-line growth hasn't been nearly as strong or consistent as Palantir's.

But if those optimistic investors are correct that BigBear.ai is on course to make significantly more sales of its artificial intelligence (AI) offerings, then there's plenty of room for it to grow from its current market cap of $2.6 billion -- at the smaller end of the mid-cap stock range. Recently, the company made a splash with an acquisition that could bolster its growth prospects and deepen its reach into the defense sector and other highly regulated markets. Could that deal have been a turning point for the stock, and does it make BigBear.ai a better buy today?

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BigBear.ai buys Ask Sage

On Dec. 31, 2025, BigBear.ai announced that it had finalized its $250 million acquisition of Ask Sage, which it described as "a leading provider of mission-ready AI for national security." Management said that the deal will not only expand its portfolio of AI solutions, but also bring in services that complement its preexisting ones.

"The combined platform enables government and enterprise customers to incorporate AI while maintaining control over data sovereignty, model governance, and security requirements," it said in the press release.

The intersection of national security and AI-powered analysis is an arena that Palantir dominates, and investors are likely to see the parallels in BigBear.ai's focus. Perhaps unsurprisingly, shares of BigBear.ai have been rising since news of the purchase came out, as investors anticipate more growth opportunities ahead for the company in the near future. The tech stock is now up by around 15% year to date.

Still missing profits and consistent growth

The Ask Sage acquisition may indeed boost BigBear.ai's growth, but what may matter more is earnings. AI models can be expensive to run and manage, and investors will want to monitor what effect this deal has on the company's bottom line, not just on revenue.

It has routinely been in the red. Over its last four reported quarters, it has reported $426.3 million in net losses on revenue of just $144.2 million. As promising as the Ask Sage purchase could be for BigBear.ai, investors might want to take a wait-and-see approach with the stock, given the question marks around the business. Although the stock has been performing well so far this year, it's also down by around 30% from its 52-week high of $10.36, as many investors are thinking twice about the company's prospects and its valuation.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.