Why BigBear.ai (BBAI) Stock Is Falling

BigBear.ai Holdings Inc BBAI shares are trading lower by 21.3% to $3.30 during Friday’s session after the company reported worse-than-expected fourth-quarter financial results.

What To Know: BigBear.ai released its fourth-quarter earnings, reporting a loss of 43 cents per share, which was significantly worse than the analyst consensus estimate of a 5-cent loss.

The company also missed revenue expectations, bringing in $43.8 million for the quarter compared to the anticipated $54.48 million. However, revenue did increase from $40.56 million in the same period last year.

Guidance: Looking ahead, the company expects fiscal 2025 revenue to range between $160 million and $180 million.

Despite the earnings miss, the company saw improvement in gross margin, which rose to 37.4% from 32.1% a year ago. Additionally, backlog surged to $418 million, marking a $250 million increase and more than 2.5 times the backlog recorded at the end of 2023.

HC Wainwright & Co. analyst Scott Buck on Friday maintained BigBear.ai with a Buy and lowered the price target from $7 to $6 following the report.

Read Also: Palantir Delivers AI-Powered Battle Stations To US Army, Stock Now Comparable To Tesla Circa 2015: Analyst

How To Buy BBAI Stock

By now you're likely curious about how to participate in the market for BigBear.ai – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, BBAI has a 52-week high of $10.36 and a 52-week low of $1.16.