Better Buy Now: BigBear.ai vs. Palantir Technologies

Shares of BigBear.ai (NASDAQ:BBAI) rocketed 21% higher last week and are up 133% in 2025. The data analytics shop has climbed five times higher in the past 12 months, rising from under $2 a share to almost $10 a stub.

Those gains are even better than Palantir Technologies (NASDAQ:PLTR), an artificial intelligence data analytics firm BigBear is often compared to. Where BBAI is up 426%, PLTR stock has risen 381%, some 12% less.

BigBear.ai (BBAI)

BigBear.ai targets the artificial intelligence and machine learning cloud-based markets, using complex and extensive software models to analyze and improve operational efficiency. The majority of its revenue comes from government contracts, and it has won several more in just the past few weeks.

It recently won a Defense Dept. contract to use AI to monitor foreign news outlets; a contract with the U.S. Navy for its contracting platform, the SeaPort Next Generation program; and a contract with the General Services Administration for its procurement services.

Because of the nature of government spending, revenue tends to be lumpy. Where revenue rose 22% in the third quarter to $41.5 million, year-to-date revenue is essentially flat at $114.4 million. BigBear is also unprofitable and losses are widening.

Over the first nine months of 2024, net losses of $149 million are nearly four times larger than the $38 million it lost in the year-ago period.

Last month it appointed new CEO Kevin McAleenan to replace Mandy Long. With ties to the Trump administration — he briefly served as acting secretary for the Dept. of Homeland Security as well as Commissioner of U.S. Customs and Border Protection in President Trump’s first term — the market is betting BigBear.ai will prosper from the new pro-AI attitude in the White House. In fact, Vice President J.D. Vance just attended an AI summit in France to encourage global governments to reduce AI regulation.

Investors have been betting big the AI data analytics firm will continue scoring wins.

Palantir Technologies (PLTR)

Palantir Technologies got its start as a Big Data operation for the three-letter national security agencies and an early adopter of using AI to crunch complex numbers and data into actionable reports.

It realized, though, there was even more money to be made in the private sector and soon began offering its platform to commercial enterprises. The government still represents the majority of its revenue, but the business side of the ledger is growing faster and narrowing the gap quickly.

While total revenue was up 36% year-over-year to $827.5 million, the commercial segment saw sales jump 65% to $214 million while government revenue was 45% higher at $343 million. It is adding more customers (up 43%) and commercial contract values were soaring as well, more than doubling to a record $803 million.

Importantly, Palantir Technologies has become consistently profitable. Adjusted operating income of $373 million represented 45% margins, leading to adjusted earnings of $0.14 per share, a 75% increase over last year’s $0.08 per share.

Palantir has been called “the best pure play AI name” because of its ability to monetize AI technology. And like BigBear.ai, it ought to benefit from the regulatory environment in Washington, not least because it has its own relationships with the Trump administration. Founder Peter Thiel and early investor David Sachs have the President’s ear.

PLTR stock has been on a steady rise higher, but its latest earnings report could supercharge its growth.

The verdict

Both BigBear.ai and Palantir Technologies are perfectly placed to capitalize on the growth and demand for AI solutions, both in the government and with the private sector. But there is only one clear choice here.

Palantir Technologies is the better investment because it is more broadly diversified than BigBear.ai in addition to its profitability. Palantir has learned how to make money off of its technology and made it more useful to a wider audience.

Bigger, better growth, diversification, and putting money in the bank all make it easy to say PLTR stock is the best stock to buy.

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