BigBear.ai stock fell almost 4% yesterday.
BigBear.ai had a backlog, totaling about $270 million at the end of June.
In addition to being unprofitable, BigBear.ai doesn't generate positive operating cash flow.
Bouncing back from an inauspicious start to the week that saw the stock finish 3.8% lower from Friday's close, BigBear.ai (NYSE:BBAI) stock is rising today after the artificial intelligence (AI) company announced it has received several new awards.
As of 12:47 p.m. ET, BigBear.ai stock was up 4.6%, retreating from an earlier rise of 11.7%.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
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Having achieved numerous successes over the past three months, BigBear.ai announced today that it has won more than 25 contract awards valued at more than $225 million since July. In addition to homeland security, the contract awards stem from defense, intelligence, and federal civilian customers.
In the press release addressing the contract awards, Kevin McAleenan, BigBear.ai's CEO, stated, "Technology does not translate into capability without operational insight, and these awards come from customers who understand both the depth of our experience and our differentiated technology."
Unsurprisingly, shares rocketed higher on this morning's news -- especially when appreciating the significance of the contract awards. To put it in perspective, it's helpful to note that, in its second-quarter 2026 financial results presentation, BigBear.ai reported a backlog of $269.6 million as of June 30.
While the news is certainly positive, AI investors shouldn't rush in and start a position solely based on the new contract awards. Since the company is unprofitable and fails to generate positive operating cash flow, and these contract awards don't guarantee significant improvement in either metric, BigBear.ai stock is best left to those with higher risk tolerances.
Most investors think they missed the AI boat because they didn't buy Nvidia in 2005.
But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.
While everyone watches the chip designers, one "backbone" company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.
Continue »
Scott Levine 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.