Down 80%, Should You Buy the Dip on BigBear.ai?
Investors hope this decision intelligence software company can become the next Palantir.
The blazing success of Palantir Technologies shows that there is a legitimate market for artificial intelligence (AI) software that can help organizations utilize their data and make better decisions. BigBear.ai Holdings (NYSE: BBAI) went public in late 2021 via a merger with a special purpose acquisition company, or SPAC.
Unfortunately, it was lousy timing. Soon after, a stock market bubble fueled by zero-percent interest rates popped. It's been a tough few years for shareholders, but the stock had momentum until the recent market volatility knocked BigBear.ai back down nearly 80% from its former high.
Is this a chance to buy the dip before the stock takes off, or is the market telling investors to stay away?