Should Investors Buy the Dip in BigBear.ai Stock (BBAI) After Q2 Losses?
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
For context, BigBear.ai delivers AI-powered decision support solutions, mainly serving the U.S. defense, intelligence, and federal government sectors.
BigBear.ai Misses Expectations in Q2
In Q2, the company's revenue fell by 18% year-over-year to $32.5 million, missing analyst projections of $40.59 million. It was primarily due to reduced activity on select U.S. Army programs.
On the earnings side, BigBear.ai reported an adjusted loss of $0.71 per share, marking a steep miss compared to the consensus forecast for a $0.06 loss.
Wall Street Stays Bullish on BBAI
Despite the disappointing results, Wall Street analysts expressed support for BBAI stock, choosing to look past short-term challenges.
Analyst Scott Buck at H.C. Wainwright reiterated his Buy rating but trimmed his price target from $9 to $8. Buck argued that Q2 results weren't surprising given similar delays affecting other defense companies. He expects revenue visibility to improve as the business approaches 2026 and sees BigBear.ai benefiting long-term from the 'One Big Beautiful Bill,' which boosts investment in its core areas. He also highlighted that the company ended Q2 2025 with over $390 million in cash, providing flexibility for reinvestment and acquisitions.
Similarly, five-star-rated analyst Jonathan Ruykhaver of Cantor Fitzgerald maintained a Buy rating and raised his price target to $6 from $5 per share. Ruykhaver pointed to meaningful progress in key areas, including enhancements to core products and improved balance sheet strength. Notably, the company's backlog rose 42.9% year-over-year to $380 million, suggesting healthy demand and improved revenue visibility. Overall, he views the expanding backlog and ongoing strategic initiatives as key factors supporting his Buy rating and a higher price target.
Is BBAI a Good Stock to Buy?
BBAI stock, based on two Buys and one Hold assigned in the last three months. The average BigBear.ai share price target is $6.67, which implies an upside of nearly 15% from current levels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
22 minutes ago
- Business Wire
BigBear.ai and Narval Holding Corp. Launch AI-Powered Cargo Security Management Solution in Panama
MCLEAN, Va.--(BUSINESS WIRE)-- (NYSE: BBAI), a leading provider of mission-ready AI for national security, today announced the launch of a next-generation cargo security management solution in partnership with Narval Holding Corp., through Narval's subsidiary International Shipping Compliance, S.A. (ISC), in Panama. Designed to protect the global supply chain, advance transparency, and counter illicit trafficking, the initiative will begin in Panama with planned expansion across the region and worldwide in key international corridors. 'Securing the global supply chain requires innovation, trust, and the ability to verify each handoff along the way,' said Kevin McAleenan, CEO of 'Securing the global supply chain requires innovation, trust, and the ability to verify each handoff along the way,' said Kevin McAleenan, CEO of 'By partnering with Narval Holding Corp. in Panama – a critical gateway for global trade – we will deliver an AI-driven solution to strengthen cargo security today, while laying the foundation for broader regional adoption and collaborations with the international shipping lines,' he continued. Panama's unique position as a hub linking the Pacific and Atlantic Oceans via the Panama Canal makes it an ideal launch point for innovation in supply chain security. The en route cargo chain-of-custody application uses biometric verification to link drivers and transport vehicles to a cargo container and its corresponding security seal, helping ensure full accountability of the cargo contents from origin to destination. 'The Panama Canal is one of the most important arteries of global trade, and protecting the integrity of cargo that moves through our ports is essential to economic stability and national security,' said Mario E. Pérez Balladares, Chairman of Narval Holding Corp. 'Our collaboration with will set a new global standard for cargo security—one that combines advanced AI, biometrics, and real-time monitoring to give governments, operators, and shipping lines unprecedented visibility and control from port to final delivery.' The solution integrates real-time driver and tracking monitoring with a centralized management platform, presenting fleet, vehicle, and driver data in an operations center. This capability enables operators to oversee cargo flows with greater precision, detect anomalies, and generate actionable insights to help disrupt smuggling networks and other illicit activities across international shipping corridors. To learn more about expertise in homeland and border security, visit About is a leading provider of mission-ready AI solutions and services for defense, national security, and critical infrastructure. Customers and partners rely on artificial intelligence and predictive analytics capabilities in highly complex, distributed, mission-based operating environments. Headquartered in McLean, Virginia, is a public company traded on the NYSE under the symbol BBAI. For more information, visit and follow on LinkedIn: @ and X: @BigBearai. To receive email communications from register here. About The Narval Group The Narval Group is a diversified investment and logistics holding company committed to driving sustainable, innovative ventures. Through its subsidiaries, the Group delivers world-class logistics solutions—including Tier-1 transshipment and temperature-controlled shipping—powered by advanced technology to ensure secure, efficient, and fully compliant supply chains. Forward-Looking Statements This press release contains 'forward-looking statements.' Such statements include, but are not limited to, statements regarding the intended use of proceeds from the private placement and may be preceded by the words 'intends,' 'may,' 'will,' 'plans,' 'expects,' 'anticipates,' 'projects,' 'predicts,' 'estimates,' 'aims,' 'believes,' 'hopes,' 'potential' or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; risks related to the uncertainty of the projected financial information (including on a segment reporting basis); risks related to delays caused by factors outside of our control, including changes in fiscal or contracting policies or decreases in available government funding; changes in government programs or applicable requirements; budgetary constraints, including automatic reductions as a result of 'sequestration' or similar measures and constraints imposed by any lapses in appropriations for the federal government or certain of its departments and agencies; influence by, or competition from, third parties with respect to pending, new, or existing contracts with government customers; our ability to successfully compete for and receive task orders and generate revenue under Indefinite Delivery/Indefinite Quantity contracts; potential delays or changes in the government appropriations or procurement processes, including as a result of events such as war, incidents of terrorism, natural disasters, and public health concerns or epidemics; and increased or unexpected costs or unanticipated delays caused by other factors outside of our control, such as performance failures of our subcontractors; risks related to the rollout of the business and the timing of expected business milestones; the effects of competition on our future business; our ability to issue equity or equity-linked securities in the future, and those factors discussed in the Company's reports and other documents filed with the SEC, including under the heading 'Risk Factors.' More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Axios
an hour ago
- Axios
White House moves on data echo emerging markets
Investors in emerging markets that have leaders who cast doubt on national economic data may have lessons for American traders, as President Trump continues to dispute official statistics. Why it matters: The U.S. is by no means an emerging market or dictatorship. But looking at how markets around the world perform under authoritarian leadership holds some important lessons for domestic investors. Catch up quick: Trump has made several recent moves. Fired the head of the Bureau of Labor Statistics. Pressured Federal Reserve chair Jerome Powell to lower interest rates. Cut a deal to take a portion of revenue from two major American chip companies selling semiconductors to China. Called on Goldman Sachs to fire its head economist, after the institution predicted, alongside most of Wall Street, that tariffs would drive inflation and slow growth. Created a scorecard that rates companies and trade associations on how hard they worked to support and promote the "One Big Beautiful Bill," a senior White House official tells Axios' Mike Allen. State of play: "In emerging markets whenever we see the administration trying to dictate monetary policy it's almost always received extremely poorly," says Jason Hsu, founder of Rayliant Global Advisors, where he focuses on emerging markets. The MSCI Emerging Markets Index is up over 20% year-to-date compared with the 10% year-to-date gains of the S&P 500. Emerging markets with authoritarian leaders can still have strong stock market performance Fabio Natalucci, CEO of the Andersen Institute for Finance and Economics and a former deputy director of the International Monetary Fund, tells Axios. What matters are the specific policies of each leader, how they affect the independence of the central bank, and the integrity of economic data. Between the lines: Highly centralized leadership in emerging markets tends to come with a weak local currency, high inflation and slowing growth. In Turkey, the head of the central bank has been dismissed a number of times, which has led to a crash of the Turkish currency. In China, doubts over economic data have forced investors to rely on alternate sources, including shipping volumes and satellite images. Zoom in: The risk in this particular moment is that Fed independence is under pressure while the full potential impact of tariffs has not been felt yet, which could leave monetary policy "really behind the curve," Natalucci says. The U.S. is "thriving because it's an open economy. It's a rules-based economy," he adds. If the rules are rewritten, it could be a catalyst for investors to continue moving away from dollar-denominated assets. Yes, but: Not only is the U.S. not an emerging market, but American leadership still has the kind of credibility that emerging markets leaders often lack, Hsu notes. Trump has "a lot of willing believers," including market participants who felt economic data gathering needed reforms to make it more accurate. What we're watching:"The market will price (any) policy mistake," Natalucci says. The bond market has been relatively stable since April. But if the Fed were to cut rates amid hot inflation, bond investors could react negatively, pushing up yields and making debt more expensive. And that could put pressure on the administration, which has already proven that it reacts when the bond market panics. The White House responded to an Axios request for comment on these parallels via email. "There is no virtue in defending a broken status quo and upholding elite-approved America Last policies that have eroded our industrial base and decimated American communities," White House spokesman Kush Desai writes, pointing to efforts to lower inflation and strike trade deals.
Fast Company
an hour ago
- Fast Company
The new freight search engine: How AI ranks and reveals 3PLs
The fight for freight visibility has changed. It no longer happens at trade shows or over email. It now takes place inside AI platforms. More companies use AI tools to find logistics providers. In 2024, 70% of U.S. transportation companies used AI solutions—17% more than the year before. Most buyers are not yet asking, 'Which 3PL should I use?' But they already use AI to compare vendors, review services, and build shortlists. AI visibility now plays a big role in logistics sales, and companies that do not show up in these results may miss good opportunities. In the past, referrals, directories, and trade events helped companies find third-party logistics providers (3PL). That approach is fading, as AI in the freight transportation market is projected to grow from $1.2 billion in 2023 to $6.8 billion by 2033. AI tools now help build strategy. They do more than route planning and demand forecasting; they also help with vendor selection by letting teams compare services quickly. HOW AI TOOLS CHOOSE WHICH 3PLS TO SHOW AI platforms like ChatGPT, Perplexity, and Google AI process lots of content. They do not browse websites like people do. They scan documents and pick answers using signals like: Clear service descriptions with logistics terms Content with headings and short paragraphs Mentions in trusted sources like industry publications and government sites Recent updates that show the business is active Pages that load fast and show content without scripts or tabs These tools look for simple, direct answers that match the question. WHERE EACH AI PLATFORM GETS ITS INFORMATION Each AI platform gets information from different places. Profound's analysis of 30 million citations across AI platforms from August 2024 to June 2025 found clear patterns: • ChatGPT uses Wikipedia (47.9% of citations), Reddit (11.3%), and institutional sources. • Google AI Overviews uses Reddit (21%), YouTube (18.8%), Quora (14.3%), LinkedIn (13%), and Wikipedia (5.7%), among others. • Perplexity uses Reddit (46.7% of citations), YouTube (13.9%), user reviews, and community-generated content. WHAT THIS MEANS FOR 3PL MARKETING For ChatGPT visibility: Focus on getting mentioned in industry publications and keep Wikipedia entries accurate. ChatGPT likes trusted sources like FreightWaves and Transport Topics. For Google AI Overviews: Join Reddit communities like r/logistics and r/freight and create YouTube content. These platforms get many citations from Reddit discussions and YouTube videos where real logistics professionals share experiences. For Perplexity: Focus on Reddit engagement and review platforms. Perplexity gets almost half its citations from Reddit discussions. It also features user reviews from platforms like Yelp and G2. To test your visibility: Write 10 buyer prompts like 'Top cold chain 3PL.' Run them in ChatGPT, Perplexity, and Google AI. Use three variations per prompt per platform. Count how often your company appears. Review all 90 responses to find patterns. This testing method comes from Daydream's method on AI visibility optimization. It helps you measure where you stand and where to improve. The following content patterns often affect AI visibility. These insights are based on observations from this blog post, which explains how AI tools detect and quote useful content: 1. Low visibility Low visibility often occurs because AI tools do not use traffic as a signal. To improve visibility, use H2 questions and give direct answers at the start. 2. Inconsistent mentions Inconsistent mentions can result from the fact that different platforms have different content preferences. For example, ChatGPT tends to favor authoritative sources like Wikipedia and institutions, while Perplexity prefers user-generated content such as Reddit threads and customer reviews. 3. Content not found When content is not found, it's often because JavaScript or tabs hide key data. To address this, use server-side rendering or clean HTML. AI tools prefer short, answer-focused content. In freight, this means writing paragraph-level answers for questions like 'What is the best 3PL for cross-border shipments?' or 'Which providers offer refrigerated freight with HACCP certification?' These answers must be clear, specific, and formatted to match real buyer queries. Keep each paragraph under 80 words and focused on one clear idea. Begin each paragraph with the direct answer. Use real user questions as your H2 or H3 headings. Dedicate one page or section to a single use case or query. Include specific keywords that buyers actually type, such as 'cross-border 3PL.' Before: 'We're proud of our reliable cold chain service.' Better: 'We provide cold chain logistics with storage from 32°F to 70°F. Our HACCP-certified warehouses include real-time monitoring and direct delivery.' Also, add FAQ sections, use FAQ schema, and avoid hiding content in tabs, modals, or downloads. AI tools select FAQ pages, comparison lists, how-to guides, and pages that solve one clear problem. If your content follows this structure, it has a better chance of being selected. AI tools now play a major role in 3PL selection, as buyers use them to search for vendors that match their exact needs. Clear, structured, and specific content makes it easier for those tools to find and cite your business. Having more pages does not lead to better visibility. What matters is providing the right content in the right format. You also need to know where each AI platform gets its information. A freight company that writes for people and machines creates value for both. AI may not replace relationships, but it is already shaping how they begin. The companies that stay readable, helpful, and honest can earn the trust of both humans and machines.
