BigBear.ai (BBAI) Stock Falls After 25% Rally: What's Going On?

Shares of BigBear.ai Holdings Inc BBAI are trading lower Wednesday, pulling back after a whirlwind session on Tuesday that saw the stock skyrocket 25%. The pause comes as investors weigh the company’s recent strategic wins against the speculative fervor that fueled its dramatic climb.

What To Know: Tuesday’s rally was initially sparked by a string of positive news. BigBear.ai announced its biometric ID software is now live in major airports, including JFK and LAX. This followed two significant Department of Defense contract wins and a partnership to expand into the Middle East, leading some analysts to label it “The Next Palantir.”

However, the primary driver behind the surge was likely intense retail speculation centered on a potential short squeeze. With a high short interest of 22.25% of its public float and a surge in call options, traders on social media platforms potentially fueled the buying pressure.

Despite the retail excitement, analysts express caution, holding a consensus price target of $4.63, below its recent peak. The company also missed first-quarter revenue and earnings estimates.

Wednesday’s pullback suggests the market is now balancing the fundamental realities against the powerful, but often temporary, impact of a retail-driven squeeze.

Price Action: According to data from Benzinga Pro, BBAI shares are trading lower by 6.69% to $4.88 Wednesday morning. BBAI has a 52-week high of $10.36 and a 52-week low of $1.16.

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.

In the case of BigBear.ai, which is trading at $5.32 as of publishing time, $100 would buy you 18.8 shares of stock.

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.