Is BigBear.ai Stock a Buy Now?
BigBear.ai (NYSE: BBAI), a developer of AI modules for edge networks, went public by merging with a special purpose acquisition company (SPAC) on Dec. 7, 2021. Its stock started trading at $9.84 the next day and closed at a record high of $12.69 on April 13, 2022.
Investors were initially impressed by the company's ambitious growth forecasts. In its pre-merger presentation, BigBear.ai claimed it could triple its revenue from $182 million in 2021 to $550 million in 2024. However, its revenue only rose from $146 million in 2021 to $158 million in 2024.
That anemic growth -- which it blamed on a difficult macro environment, competition from bigger AI companies, and the bankruptcy of its top customer Virgin Orbit -- drove away the bulls. That's why it trades at less than $4 today. Should investors buy it as a turnaround play?
Source Fool.com
