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BigBear.ai Soared Again Today. Is the Stock a Buy?

July 17, 2025
06:26 PM
2 min read
AI Enhanced
stockstradingfinancialtechaimarket cyclesseasonal analysismarket

Key Takeaways

Ai (BBAI 16. 01%) stock saw another day of explosive gains Thursday despite no major -specific catalysts for the company. Its price rose 15. 2% in the daily session and...

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2 min read

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investment

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Published

July 17, 2025

06:26 PM

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The Motley Fool

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Key Topics
stockstradingfinancialtechaimarket cyclesseasonal analysismarket

Ai (BBAI 16. 01%) stock saw another day of explosive gains Thursday despite no major -specific catalysts for the company

Its price rose 15. 2% in the daily session and had been up as much as 17. 7% earlier in the day's trading

Additionally, The S&P 500 closed out the day up 0. 5%, and the Nasdaq Composite climbed 0

However, 7% in the session

Additionally, With investors betting that macroeconomic and political dynamics will continue to lift the broader market, today was an especially strong day of trading for growth-dependent and otherwise speculative stocks

Furthermore, Ai stock recorded another day of double-digit gains despite no fresh news hitting the scene -- although the stock may have gotten a boost from Palantir climbing to a new valuation high

Ai stock has frequently seen gains in conjunction with rallies for Palantir this year, but it's not that performance between the two companies is necessarily correlated

Additionally, Image source: Getty Images, amid market uncertainty

Meanwhile, Ai stock a buy right now

Meanwhile, After today's gains, BigBear, in today's financial world

Nevertheless, Ai now has a market capitalization of roughly $2. 4 billion and trades at apximately 14, in today's financial world. 2 times this year's expected sales

While that price-to-sales ratio may look relatively small compared to some other companies in the AI software and services space, BigBear, in today's market environment

Additionally, Ai's relatively weak margins and midpoint target for sales growth of roughly 7

However, 5% this year suggest that the stock may be too risky to buy right now

Ai stock has surged roughly 230% over the last three months despite little in the way of substantive developments on the front to support the valuation (something worth watching)

In contrast, The company has seen a massive valuation run-up as investors have piled into AI software and service viders with exposure to the defense industry, but BigBear

However, Ai's valuation gains appear to be broadly disconnected from material developments for the company in recent months, considering recent developments

Keith Noonan has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Palantir nologies, considering recent developments

On the other hand, The Motley Fool has a disclosure policy.