BigBear.ai, Inc.

Below is Validea's guru fundamental report for BIGBEAR.AI HOLDINGS INC (BBAI). Of the 22 guru strategies we follow, BBAI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
BIGBEAR.AI HOLDINGS INC (BBAI) is a small-cap growth stock in the Software & Programming industry. The rating using this strategy is 44% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
TWELVE MINUS ONE MOMENTUM:
PASS
RETURN CONSISTENCY
NEUTRAL
SEASONALITY
NEUTRAL
Detailed Analysis of BIGBEAR.AI HOLDINGS INC
More Information on Wesley Gray
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Detailed Fundamental Analysis - BBAI

Key Points
Palantir and BigBear.ai are on track to capitalize on the fast-growing demand for AI software solutions.
Both companies are seeing solid growth in their revenue pipeline.
However, investors have an easy choice to make if they are looking to choose one of these two AI stocks now.
The spending on artificial intelligence (AI) software and tools has been picking up momentum at a solid pace of late, and that's not surprising as this technology is expected to deliver terrific productivity gains. According to McKinsey, AI has the potential to deliver $4.4 trillion worth of productivity gains in the long run.
Palantir Technologies (NASDAQ: PLTR) and BigBear.ai (NYSE: BBAI) are two companies that can help investors benefit from the massive generative AI software market that's expected to clock a compound annual growth rate (CAGR) of 36% through 2030. But if you have to choose from one of these two AI stocks for your portfolio right now, which one should it be?
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The case for Palantir Technologies
Palantir is considered to be the leading player in the AI software platforms market by third-party research firms such as Forrester and IDC. That explains why the company has been landing new customers for its AI software solutions at a terrific clip.
Its overall customer count was up by 43% year over year in the second quarter of 2025. But more importantly, the productivity gains delivered by Palantir's AI solutions are helping it expand its business with existing customers. As a result, the company's deal size is improving, allowing it to close 157 deals worth at least $1 million last quarter. That was a jump of 64% from the year-ago period, exceeding the growth in its customer base.
It is easy to see why customers spend more money on Palantir's AI software if we take a look at management's comments on the recent earnings conference call. As pointed out by Chief Revenue Officer Ryan Taylor:
The impact our software is delivering for our customers as they cross the chasm is ever widening their advantage over the AI have-nots. Citibank shared that the customer onboarding process and relevant KYC and security checks that once took them nine days now take seconds. Fannie Mae recently announced they're working with Palantir, decreasing the time to uncover mortgage fraud from two months down to seconds.
These are just two of the many examples highlighted by management about how its Artificial Intelligence Platform (AIP) is helping it win more customers and strengthen its relationship with existing ones. As such, it won't be surprising to see Palantir sustain its healthy growth rates following the 45% spike in revenue forecast for 2025.
Another important thing worth noting is that Palantir's ability to gain more business from existing customers drives stronger bottom-line growth. Its earnings are expected to jump 57% this year to $0.64 per share, followed by impressive growth over the next couple of years as well.
So, Palantir is likely to remain a top AI stock for a long time to come, thanks to the secular growth opportunity in the AI software market.
The case for BigBear.ai
Just like Palantir, BigBear.ai also provides AI software solutions that help its customers make faster and better decisions. The stock has more than tripled in value in the past year, as investors buy it in anticipation that it could become a big winner of the lucrative opportunity in the AI software market. However, investors can buy this stock at a much cheaper valuation despite its red-hot rally.
BigBear.ai stock trades at 9 times sales as compared to Palantir's way more expensive price-to-sales ratio of 115. Another thing working in BigBear's favor is its fast-growing revenue backlog that could lead to an acceleration in the company's growth. It ended the second quarter with a backlog of $380 million, up by 43% from the year-ago period.
However, a closer look at BigBear.ai will tell us that the company's growth is nowhere near that of Palantir's. Its revenue slid 18% year over year in Q2 to $32.5 million, as it was unable to convert some of its Army contracts into revenue. This brings us to the reason why BigBear.ai has been in hot water of late.
The company relies on government contracts for a majority of its revenue. So, its business is dependent on government budgets and policies, which is why it was forced to lower its 2025 guidance when it released its Q2 results. Investors pressed the panic button, and BigBear.ai stock went into free-fall mode since the earnings' release on Aug. 11.
The company's updated revenue guidance of $132.5 million for 2025 would be lower than the $158 million in revenue it generated last year. Moreover, BigBear.ai's backlog doesn't necessarily guarantee that its growth will pick up due to certain caveats associated with that metric. As such, just because BigBear.ai is cheaper than Palantir doesn't make it a better buy than the latter.
The verdict
Palantir, though extremely expensive right now, has the ability to justify its rich valuation thanks to its solid position in the fast-growing AI software space. The company is quickly building up a solid customer base and is also winning a bigger share of their wallets. That's the reason why its forward sales multiples are significantly lower than the trailing multiple.
So, investors looking to choose from one of these two AI stocks for their portfolio right now would be better off buying Palantir, given the company's fast pace of growth and sunny prospects considering its leading position in the AI software market.
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Citigroup is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Artificial Intelligence (AI) Stock: Palantir vs. BigBear.ai

C3.ai, Inc. AI reported a loss per share in the first quarter of fiscal 2026 (ended July 31, 2025), which was marginally narrower than the Zacks Consensus Estimate but wider than the year-ago quarter. Quarterly revenues missed the consensus mark and tumbled year over year.
The quarterly performance was hurt by declining contributions from the Subscription and Professional services business. Moreover, increased operating expenses and lower leverage from the top line pressured the bottom line during the quarter.
AI stock tumbled 11.8% during yesterday’s after-market trading session, following the earnings release. The investors’ sentiments are likely to have been hurt by a gloomy view of the second quarter’s revenues and expectations of a wider adjusted loss year over year.
AI’s Q1 Highlights
The company reported an adjusted loss per share of 37 cents, narrower than the Zacks Consensus Estimate of a loss per share of 38 cents by 2.6%. In the year-ago quarter, it reported an adjusted loss per share of five cents.
Revenues of $70.3 million missed the consensus mark of $91 million by 22.7% and tumbled 19.4% year over year. The reported revenues were within the company’s expected range of $70.2-$70.4 million, highlighted in the preliminary results reported in early August.
C3.ai, Inc. Price, Consensus and EPS Surprise
C3.ai, Inc. price-consensus-eps-surprise-chart | C3.ai, Inc. Quote
Subscription revenues were $60.3 million, down year over year from $73.5 million, with Professional services revenues also down by 27.6% to $10 million.
Adjusted gross profit during the fiscal first quarter declined year over year to $36.3 million from $60.9 million, with the adjusted gross margin contracting 1,800 basis points (bps) to 52%.
AI’s Balance Sheet & Cash Flow
As of the fiscal first quarter, C3.ai had cash and cash equivalents of $80.9 million, down from $164.4 million at fiscal 2025-end.
Net cash used in operating activities was $33.5 million as of the first quarter of fiscal 2026, against net cash provided by operating activities of $8 million in the year-ago period. Free cash flow at the end of the quarter was negative at $34.3 million against $7.1 million at the year-ago quarter's end.
C3.ai Unveils Gloomy Q2 View
The company expects revenues in the second quarter of fiscal 2026 to be between $72 million and $80 million, down between 15% and 24% from $94.3 million reported in the year-ago quarter.
Adjusted loss from operations is expected to be between $49.5 million and $57.5 million, wider than $17.2 million reported a year ago.
AI’s Zacks Rank & Peer Releases
C3.ai currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BigBear.ai Holdings, Inc. BBAI reported mixed second-quarter 2025 results, with the bottom line beating the Zacks Consensus Estimate while the revenues missed the same. On a year-over-year basis, the bottom and top lines tumbled.
The quarterly performance was hurt by notable declines in demand volume on certain Army programs. Moreover, increases in research and development and restructuring expenses marred the bottom line of the company. BigBear.ai toned down its full-year revenue guidance to be between $125 million and $140 million from the previously expected range of $160-$180 million. Due to uncertainties surrounding certain Army programs, alongside an expected growth investment in the second half of 2025, BigBear.ai has yet to provide the revised adjusted EBITDA guidance, which was previously expected to be in negative single-digit millions.
SoundHound AI, Inc. SOUN posted record second-quarter 2025 results, outperforming Wall Street expectations on both the top and bottom lines. In its strongest quarter on record, SoundHound AI’s prior strategic investments — particularly its 2024 acquisitions — translated into tangible, high-impact results.
SoundHound AI, the voice Artificial Intelligence specialist, benefited from accelerating adoption across enterprise, automotive and restaurant verticals, as well as strong early traction for its agentic AI and Voice Commerce initiatives. Robust revenue growth, expanding deployments and improved cost synergies underscored management’s confidence, prompting an upward revision to full-year guidance.
IonQ, Inc. IONQ reported a net loss of 70 cents per share in the second quarter of 2025, significantly wider than the Zacks Consensus Estimate and above the year-ago period’s loss of 18 cents. Revenues topped the consensus mark and grew year over year by 81.8%.
During the quarter, IonQ significantly expanded its global footprint with important government and commercial partnerships and launched a world-first partnership with AstraZeneca, AWS and NVIDIA, delivering a 20x acceleration in drug development. For full-year 2025, IonQ now expects revenues in the $82-$100 million range, with third-quarter revenues expected to be within the $25-$29 million range.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

C3.ai's Stock Tumbles on Q1 Loss, Revenues & Margin Down Y/Y

Key Points
BigBear.ai stock dropped sharply following the company's recent earnings report.
The federal government is accelerating its spending on AI and border control, but that's not translating into profits.
The story of the stock market these days is arguably Palantir Technologies, which was the best-performing stock in the S&P 500 in 2024 and is looking to repeat that success this year. Palantir is capitalizing on the rise of artificial intelligence (AI) to bring AI-powered solutions to its government contracts, and is rapidly expanding in the commercial space as well.
While Palantir is a massive success story, it's not the only AI company working in the government space. BigBear.ai (NYSE: BBAI) is much smaller than Palantir and its stock is up 20% so far this year. However, BigBear.ai stock took a beating after the company's second-quarter earnings report and is down 28% in the last month.
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Is BigBear.ai worth buying on the dip? Let's take a look.
About BigBear.ai
Based in a Virginia suburb of Washington, D.C., BigBear.ai is geared heavily toward its federal government work. The company provides mission-ready AI solutions and services for defense and intelligence agencies.
The company has a $165 million contract with the U.S. Army to modernize and incorporate AI into its platforms, allowing commanders to make data-driven decisions for the training and mobilization of soldiers.
It is also involved in a number of smaller efforts, including a collaboration with Hardy Dynamics to help integrate machine learning and AI into military operations, and an enhanced passenger processing program using biometric software at international airports in Chicago, Los Angeles, New York, Denver, Dallas, and Charlotte, North Carolina.
The company is looking to capitalize on the Trump administration's focus on using biometrics to support border control and an increased emphasis on using AI to guide military decision-making. Management sees a $70 billion opportunity from increased funding for U.S. Customs and Border Protection, and a $673 million opportunity from funding approved for biometric border controls.
And it's growing its international efforts, including new work with the United Arab Emirates for AI work across several sectors. The work is being done in conjunction with Easy Lease PJSC and Vigilix Technology Investment.
While these are all logical headwinds that support BigBear.ai's growth story, the company's recent earnings report raised some issues.
A disappointing report
While Palantir wowed the market by reporting quarterly revenue that topped $1 billion for the first time, BigBear.ai actually saw a revenue decrease in the second quarter. The company had sales of $32.5 million, down 18% on a year-over-year basis. It cited lower volume on some Army programs for the drop.
The company also posted a net loss of $228.6 million, a massive increase from its loss of $14.4 million in Q2 2024. BigBear.ai said the increase was due to non-cash changes in derivative liabilities of $135.8 million regarding 2029 warrants, and a non-cash goodwill impairment of $70.6 million.
In addition, BigBear.ai withdrew its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) guidance, citing uncertainty about Army programs and anticipated growth investment spending in the second half of the year. That's a huge red flag for investors, particularly when you consider that Palantir saw 48% revenue growth in the second quarter. While Palantir's revenue is taking off like a rocket, BigBear.ai is staying relatively flat.
The bottom line
If you're comparing Palantir and BigBear.ai, the one place where BigBear comes out ahead is the valuation. Palantir's price-to-sales ratio is an astounding 117, while BigBear.ai comes in at just over 9. The biggest argument against Palantir has been its valuation -- but it's also hard to overlook Palantir's massive growth.
That's why it makes sense for investors to hedge their bets against Palantir by looking at other AI companies that have government contracts. But I am deeply skeptical of BigBear.ai at this point because it's not showing that it has enough contracts to be viable. While Palantir closed 157 deals valued at more than $1 million in the second quarter alone, BigBear.ai is overly dependent on its large Army contract -- and doesn't have the ability to adjust should the dollars from that one deal stop flowing.
That's why I'm not buying BigBear.ai stock on this dip.
Should you invest $1,000 in BigBear.ai right now?
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Patrick Sanders has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Down 28%, Should You Buy the Dip on BigBear.ai Stock (BBAI)?

Artificial intelligence ("AI") stocks have been on a roller coaster in 2025, with investors weighing huge growth opportunities against volatile financial performance. Two of the more widely followed small-cap names in this space—SoundHound AI SOUN and BigBear.ai BBAI—are capturing attention for very different reasons. SoundHound has emerged as a leader in voice-enabled AI for enterprises, restaurants, and automakers, while BigBear.ai has positioned itself as a national security-focused AI solutions provider for government and critical infrastructure. The common thread between them is that both companies are striving to leverage differentiated AI platforms in high-stakes industries with large addressable markets.
Both companies gained attention amid the AI stock boom, and each just reported its second-quarter 2025 earnings, making now an ideal time to compare their prospects. They share the common theme of leveraging AI to transform traditional sectors, and each has touted significant opportunities ahead. However, their recent results and trajectories differ markedly, raising the question: which stock offers more upside from here?
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for SoundHound Stock
SoundHound AI has positioned itself as a leader in voice-enabled AI, and its technology is gaining real traction across industries. The company’s core platform allows businesses to add conversational voice assistants to their products – from automotive infotainment systems to restaurant drive-thru kiosks and banking apps. This focus translated into explosive top-line growth.
SoundHound’s second-quarter 2025 performance was nothing short of stellar, with revenues surging 217% year over year to roughly $42.7 million, handily surpassing consensus expectations. Growth was fueled by rapid expansion in the quick-service restaurant ("QSR") vertical, where SoundHound has rolled out AI-enabled ordering to more than 14,000 restaurant locations, adding customers like IHOP and Red Lobster while deepening ties with Chipotle and MOD Pizza. This restaurant adoption positions SoundHound as an early leader in automating voice-based transactions at scale—a potentially massive market given the labor shortage in the sector. Thanks to these outstanding results, management raised its 2025 revenue outlook to $160–$178 million, nearly doubling the $84.7 million achieved in 2024. Such rapid growth reflects robust demand for SoundHound’s voice AI solutions and has instilled confidence in its trajectory. (read more: SoundHound Q2 Earnings Beat as AI Demand Fuels 217% Sales Growth).
Beyond restaurants, the company is leveraging its proprietary Polaris foundation model and Amelia 7 agentic AI platform to enhance cross-vertical adoption. These tools are showing traction in automotive and retail partnerships, particularly as Voice Commerce gains momentum. The model envisions a seamless ecosystem where consumer interactions in cars or stores naturally flow into merchant transactions—creating recurring monetization opportunities (read more: SoundHound Stock Soars 49% Since Q2 Earnings: Should You Still Buy?).
Despite its strong technology and sales momentum, SoundHound is still an emerging tech firm with ongoing challenges. Like many young AI companies, it remains unprofitable and continues to burn cash as it scales. It also faces formidable competition from tech giants, including Amazon’s AMZN Alexa, Alphabet’s GOOGL Google Assistant, and Apple’s Siri, all of which invest heavily in voice AI, potentially pressuring independent players.
The Case for BigBear.ai Stock
BigBear.ai is a smaller company, but one that has carved out a notable presence in AI for government and enterprise. It describes itself as a pure-play AI provider with core expertise in “decision intelligence” – essentially using AI and machine learning to help organizations make better decisions with their data. BigBear’s solutions are applied in critical areas like defense, intelligence, cybersecurity, logistics and supply chain management, usually through U.S. government or military contracts. This niche focus led to significant contract wins and a swelling pipeline of future work.
The company’s second-quarter 2025 results revealed both the promise of its mission-critical defense analytics role and the hurdles of scaling profitably. Revenues fell year over year to around $39.8 million, missing expectations and underscoring execution headwinds (read more: BBAI Stock Tumbles on Q2 Loss, Revenues Decline Y/Y, '25 View Down).
On the positive side, BigBear.ai’s positioning within national security remains a unique moat. The company provides AI-enabled solutions for defense readiness, logistics, and intelligence analysis—areas likely to benefit from long-term government and Department of Defense funding. Its proprietary platforms, such as veriScan for identity verification and ConductorOS for operational analytics, provide differentiation in specialized use cases where few commercial players compete.
However, BigBear.ai’s growth remains uneven, with heavy reliance on government contracts and budgets causing lumpy revenues. Despite promising long-term prospects, near-term performance is weak, with losses mounting. Management flagged delays in Army platform transitions and withdrew 2025 adjusted EBITDA guidance, citing softer revenues and higher investments that could pressure results until new awards come through (read more: BigBear.ai Stock Down 21% Since Q2 Earnings: Should You Buy the Dip?).
Share Price Performance: SoundHound Vs BigBear.ai
SoundHound’s stock soared a staggering 836% in 2024 amid rapid revenue growth, and BigBear.ai likewise surged almost 108%. This explosive upside, however, has been followed by extreme volatility.
Over the past month, SoundHound shares have gained 11.8%, performing much better than BigBear.ai. BBAI stock has plunged 23.1% during the same time frame. SoundHound's share price performance for the past month reflects strong upward momentum, outperforming in its sector.
1-Month Share Price Performance
Image Source: Zacks Investment Research
Valuation of SOUN & BBAI Stocks
After its spectacular run last year, SoundHound’s valuation became quite rich, higher than that of its industry. Even after pulling back, the stock trades around a 25.91X forward 12-month price-to-sales (P/S) ratio – a steep multiple for a firm still posting losses.
The good news is that the company raised 2025 revenue guidance to $160–$178 million, with an aim for adjusted EBITDA profitability by year-end. So rapid growth could help boost this valuation over time.
Image Source: Zacks Investment Research
BBAI is trading at 12.93X, lower than the industry’s 17.4X and below SoundHound’s hefty multiple. BigBear’s cheaper sales multiple alone isn’t enough to deem it a bargain, given its slow growth and ongoing challenges.
Image Source: Zacks Investment Research
Earnings Estimates Trend & Growth Rate for SOUN and BBAI Stocks
Analysts are growing increasingly optimistic about SOUN’s earnings potential. Over the past 30 days, the Zacks Consensus Estimate for SOUN’s 2025 loss per share has narrowed to 13 cents per share from 16 cents, reflecting a positive shift in sentiment.
For SOUN Stock
Image Source: Zacks Investment Research
For BBAI Stock
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 loss per share is pegged at $1.10, which has widened from 41 cents in the past 30 days.
The contrast in growth rates is notable — for 2025, the analysts expect BigBear’s revenues to decline 16.2% to $132.5 million, whereas SoundHound is aiming to roughly double its revenue this year to $165.6 million (up 95.6%). This slower growth trajectory, coupled with ongoing losses, makes investors cautious in the short term for BBAI stock.
Conclusion
After weighing both companies, SoundHound AI appears to have the clearer edge in upside potential heading into 2025. The fundamental differences are striking – SoundHound is delivering rapid revenue growth and expanding into new deals across industries, and it benefits from a strong balance sheet and improving earnings outlook. By contrast, BigBear.ai is growing much more slowly (even shrinking in the near term) and is grappling with larger immediate losses and external uncertainties. While BigBear’s low relative valuation, big-name partnerships, and hefty backlog show promise for the long run, those factors may take longer to translate into stock gains, given the execution risks. The current Zacks Ranks underscore this divergence: SoundHound carries a Rank #3 (Hold), whereas BigBear.ai sits at Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoundHound vs. BigBear.ai: Which AI Stock Has More Upside Now?

Below is Validea's guru fundamental report for BIGBEAR.AI HOLDINGS INC (BBAI). Of the 22 guru strategies we follow, BBAI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
BIGBEAR.AI HOLDINGS INC (BBAI) is a mid-cap value stock in the Software & Programming industry. The rating using this strategy is 44% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
TWELVE MINUS ONE MOMENTUM:
PASS
RETURN CONSISTENCY
NEUTRAL
SEASONALITY
NEUTRAL
Detailed Analysis of BIGBEAR.AI HOLDINGS INC
More Information on Wesley Gray
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The NASDAQ 100 Pre-Market Indicator is down -82.5 to 23,415.62. The total Pre-Market volume is currently 149,566,087 shares traded.
The following are the most active stocks for the pre-market session:
Opendoor Technologies Inc (OPEN) is +0.261 at $5.27, with 42,688,741 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is +0.41 at $6.75, with 10,928,464 shares traded. NIO's current last sale is 158.82% of the target price of $4.25.
Direxion Daily TSLA Bull 2X Shares (TSLL) is -0.13 at $12.67, with 10,482,087 shares traded. This represents a 101.43% increase from its 52 Week Low.
Intel Corporation (INTC) is +0.45 at $25.25, with 6,034,285 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2025. The consensus EPS forecast is $-0.12. INTC's current last sale is 114.77% of the target price of $22.
iShares Ethereum Trust (ETHA) is -1.62 at $34.97, with 5,786,874 shares traded., following a 52-week high recorded in prior regular session.
PDD Holdings Inc. (PDD) is +1.12 at $128.23, with 4,694,335 shares traded. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.22 at $17.97, with 4,438,011 shares traded. This represents a 7.54% increase from its 52 Week Low.
Roblox Corporation (RBLX) is +1.58 at $119.10, with 1,119,046 shares traded. As reported by Zacks, the current mean recommendation for RBLX is in the "buy range".
Corning Incorporated (GLW) is -0.02 at $65.75, with 953,644 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2025. The consensus EPS forecast is $0.65. As reported by Zacks, the current mean recommendation for GLW is in the "buy range".
Alibaba Group Holding Limited (BABA) is +4.16 at $127.10, with 787,456 shares traded.BABA is scheduled to provide an earnings report on 8/29/2025, for the fiscal quarter ending Jun2025. The consensus earnings per share forecast is 1.95 per share, which represents a 204 percent increase over the EPS one Year Ago
BigBear.ai, Inc. (BBAI) is -0.05 at $5.45, with 780,870 shares traded. BBAI's current last sale is 90.83% of the target price of $6.
Nike, Inc. (NKE) is -0.31 at $78.07, with 544,390 shares traded. NKE's current last sale is 98.82% of the target price of $79.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Aug 25, 2025 : OPEN, NIO, TSLL, INTC, ETHA, PDD, SQQQ, RBLX, GLW, BABA, BBAI, NKE

Key Points
BigBear.ai was hampered by a slowdown in government spending last quarter.
The company delivered a big increase in its backlog, but there is a catch.
Shares of BigBear.ai (NYSE: BBAI) dropped like a rock following the release of the company's second-quarter results. It was easy to see why investors pressed the panic button after the report came out on Aug. 11: The company missed Wall Street's expectations by a mile and downgraded its guidance substantially.
BigBear.ai's stock price fell nearly 16% on the day following its earnings release. Let's see why this high-flying artificial intelligence (AI) company isn't in the good graces of investors anymore, and check if its sharp drop can be treated as a buying opportunity.
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BigBear.ai's reliance on government contracts is weighing on the company
BigBear.ai's AI software platform is used by multiple U.S. government agencies, including border protection, defense and intelligence, and transportation. Though the company doesn't pinpoint exactly how much it is reliant on government contracts, it did say in its latest quarterly filing that the "majority of our revenue is derived from federal government contracts."
BigBear management added in the 10-Q filing that "U.S. government spending levels, particularly defense spending, and timely funding thereof can affect our financial performance over the short and long term."
This is precisely what happened last quarter. Revenue fell 18% from the year-ago period to $32.5 million, and that was well below the $40.6 million consensus estimate. Management said that the fall in revenue was a result of "lower volume on certain Army programs."
Specifically, the company was affected by the focus on cost efficiency by the Army last quarter, which disrupted its business. The adjusted loss per share was also bigger than expected. BigBear lost $0.71 per share last quarter as compared to a loss of $0.06 per share in the year-ago period.
However, the guidance was the bigger problem. Earlier, it was expecting a 7% increase in revenue in 2025. Its updated guidance of $125 million to $140 million now points toward a 16% drop at the midpoint when compared to its 2024 revenue. The positive takeaway from the latest quarterly report was a year-over-year jump of 43% in its backlog to $380 million.
But then, a closer look at the backlog tells us that the company may not be able to convert all of that into actual revenue. Just over 4% of BigBear's backlog last quarter was funded, which refers to the existing contracts for which funding has already been allocated.
What's more, nearly $279 million of its backlog was under the "priced, unexercised options" category. This refers to the "remaining contract value of goods and services to be delivered under existing contracts if our customer elects to exercise all of the options available in the contract."
So the backlog doesn't give us a true picture of its revenue growth potential, considering the caveats that apply to it. In all, the company's reliance on federal programs isn't exactly a positive for the stock right now.
The valuation points toward more downside
Analysts expect BigBear.ai to return to revenue growth in 2026. However, as the following chart shows, they have significantly reduced their growth expectations for next year.
Things could turn out to be worse if the company's contracts don't pan out as expected. That's why buying BigBear.ai stock right now looks like a risky proposition because it trades at 11 times sales, a premium to the U.S. technology sector's average price-to-sales ratio of 8.8. The company's slowing growth trajectory doesn't justify that premium.
Assuming it does manage to achieve $150 million in revenue in 2026 and trades in line with the U.S. technology sector's average sales multiple, its market cap could drop to $1.3 billion. That points toward substantial downside from its current market cap of $2.3 billion.
Investors, therefore, would do well to look at other AI stocks right now that are not just cheap but are growing at a healthy pace, since BigBear.ai could continue remaining under pressure thanks to the points discussed above.
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Harsh Chauhan 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BigBear.ai, Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — medium

Security parameters