BigBear.ai's stock has benefited from overall artificial intelligence (AI) enthusiasm.
BigBear.ai's second-quarter revenue decreased 18% year over year.
There have been dozens of artificial intelligence (AI)-focused companies that have seen their valuations explode over the past 12 months as people rush to invest in these stocks to take advantage of the growth opportunities. One stock in particular that's had a great past 12 months is BigBear.ai (NYSE: BBAI).
BigBear.ai is an AI company specializing in decision intelligence in global logistics and supply chains, cybersecurity, and autonomous systems. It has been around since 1988, but became a publicly traded company through a merger with a special purpose acquisition company (SPAC).
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In the past 12 months (using Sept. 30, 2024, as the starting date), BigBear.ai's stock is up 323% -- nearly 20 times more than the S&P 500's growth during that time. This means that a $10,000 investment would have grown to around $42,290 in that span.
Much of BigBear.ai's growth in the past 12 months can be attributed to positive news from its government and defense contracts, its VeriScan biometric system, and broader AI enthusiasm. However, its recent financial performance hasn't been that encouraging. In the second quarter, its revenue decreased 18% year over year to $32.5 million, and its net losses increased from $14.4 million to $228.6 million.
BigBear.ai management expects the company's 2025 revenue to be between $125 million and $140 million, down from the $160 million to $180 million it originally expected at the end of 2024.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.