Investors Weigh Pros and Cons of BigBear.ai Stock Amid AI Growth

NEW YORK, NY — Investors are increasingly curious about how to invest in artificial intelligence growth, with many eyeing BigBear.ai. The company specializes in AI data analytics, which has gained traction among firms seeking better data insights for decision-making. BigBear.ai’s services cater to diverse industries, including national security and healthcare.

Recently, BigBear.ai’s stock experienced a remarkable increase of approximately 200% over the last year. This surge in stock price draws interest, although the reasons behind this investor enthusiasm remain unclear. Some believe it may stem from the appeal of emerging AI startups amidst a boom in the sector. Additionally, Palantir Technologies, a strategic partner of BigBear.ai, has seen significant successes that likely inspire investor confidence.

However, potential investors should approach with caution, as BigBear.ai’s stock has proven highly volatile. The company’s shares have dropped nearly 60% since February 2025 and also decreased significantly since its public offering in late 2021. Concerns also arise regarding the company’s sales growth, reporting only a 5% rise in revenue to $34.8 million in the first quarter of 2025. Management forecasts revenue for the entire year between $160 million and $180 million, reflecting modest growth at best.

The leadership transition at BigBear.ai raises further issues. The company has cycled through three CEOs in four years, with the current CEO, Kevin McAleenan, having taken office only in January 2025. Such instability can lead to uncertainty, which is particularly troubling for a young company navigating a fast-evolving tech landscape.

Given these factors, several analysts express skepticism about investing in BigBear.ai at this time. Weak sales data and ongoing leadership challenges are viewed as red flags for growth-oriented investors. The prevailing sentiment suggests that it may be wiser to consider established AI companies that demonstrate stable growth and reliable management.

Ultimately, while the potential for future growth exists, scrutiny and patience are advised for investors eyeing BigBear.ai’s stock.