The increasing interest in artificial intelligence has translated into significant financial gains for several companies, notably BigBear.ai (NYSE:BBAI), which has seen its stock rise approximately 230% over the past year. However, the situation has changed markedly in 2025, as BBAI’s share price has decreased by about 60% since hitting a peak in February. In its latest earnings report from early May, the company disclosed revenues of $34.8 million, reflecting only a modest 5% year-over-year growth, while incurring net losses of around $62 million.
Despite these losses, an influential investor known as The Techie identifies substantial opportunities ahead for BigBear.ai. This seasoned investor highlights the decreasing net losses and the potential for profitability, supported by a backlog of contracts totaling $384.9 million. Furthermore, a new project in collaboration with the U.S. government aims to enhance passenger processing using facial recognition and operational analytics at points of entry, which could bolster the company’s standing in both the defense sector and everyday applications of its technology.
BigBear.ai is also making strides internationally with its partnership with Easy Lease in the UAE, positioning itself to tap into the lucrative Gulf Cooperation Council (GCC) market. While the company currently trades at significantly higher valuation multiples compared to industry averages, The Techie believes these valuations are reasonable given the high demand and potential growth in AI applications.
BBAI’s stock currently holds a Moderate Buy consensus rating from Wall Street analysts, with two Buy ratings and two Hold ratings. The average price target is $4.83, suggesting an upside of approximately 22%.
The landscape for companies involved in AI technology continues to evolve, with BigBear.ai poised for potential recovery and expansion in a growing market. This situation reflects the broader trend of investment in innovative technologies, which can pave the way for future growth and profitability.