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BigBear.ai (NYSE: BBAI) shares rose over 200% in the past year, peaking at $10.36 in February 2023 after the announcement of Project Stargate. However, the stock has since fallen by more than 50% from this high, attributed to macroeconomic uncertainties and federal budget cuts affecting government contracts, which are crucial for the company.
In its Q1 2023 report, BigBear.ai reported a 5% year-over-year increase in sales, totaling $34.8 million, while facing a net loss of $62 million and holding $101.4 million in debt out of $198.5 million in total liabilities. The company aims for 2025 revenue between $160 million and $180 million, following leadership changes with Kevin McAleenan as CEO. Despite sales growth potential, analysts suggest caution in investing due to the overall uncertain financial landscape.
The company did not meet its previous sales target of $165 million, generating $158.2 million instead. Comparative analysis with competitors like Nvidia and C3.ai indicates BigBear.ai’s lower market valuation, but this is coupled with concerns over its limited revenue growth and instability.
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