Why BigBear.ai Holdings Stock Dived by Almost 14% Today
BigBear.ai Holdings (NYSE: BBAI) might be on the cutting edge of technology, but its stock was dulled by a sell-off Friday. Investors sold out of the artificial intelligence (AI) specialist on the back of a rather weak earnings report. When the smoke cleared, the share price was down nearly 14%, contrasting sharply with the 1.3% gain of the benchmark S&P 500 index.
Significant declines and big misses in the first quarter
BigBear.ai fell well short of analyst estimates in its opening quarter of 2024.
For the period, the AI specialist earned revenue of just over $33 million, representing a decline of more than 21% on a year-over-year basis. The company attributed the decline to the expected wind-down of a program it had with the U.S. Air Force and the bankruptcy of satellite company Virgin Orbit, another client.
Further down the profit-and-loss sheet, BigBear.ai's net loss deepened considerably. It tumbled to more than $125 million, or $0.67 per share, from the year-ago shortfall of slightly over $26 million.
Neither headline figure came close to the average analyst estimate. Collectively, pundits following the AI stock were anticipating nearly $44 million for revenue and a much lighter per-share net loss of $0.06.
2024 revenue guidance in line with analyst figure
At least BigBear.ai's guidance didn't fall short. The company is expecting to post $195 million to $215 million in revenue for the entirety of 2024; the average analyst projection for the metric is slightly less than $203 million. Management did not proffer any profitability forecasts.
Should you invest $1,000 in BigBear.ai right now?
Before you buy stock in BigBear.ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BigBear.ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $525,806!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of April 30, 2024
Eric Volkman 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.
Why BigBear.ai Holdings Stock Dived by Almost 14% Today was originally published by The Motley Fool