Latest news with #JuliePeffer
Globe and Mail
11 hours ago
- Business
- Globe and Mail
Is BigBear.ai Stock a Buy Now?
The hot artificial intelligence (AI) market has birthed a number of high-flying AI stocks. One of these is (NYSE: BBAI). The company's share price soared more than 200% over the past 12 months through June 18. The stock hit a 52-week high of $10.36 in February after President Donald Trump announced Project Stargate, which aims to invest billions of dollars into the AI sector. Since then, stock is down more than 50% from its peak. Does this present an opportunity to scoop up the company's shares for cheap? Why shares plummeted A confluence of factors led to the decline in stock this year. One is Wall Street's concerns about the unpredictable macroeconomic environment, exacerbated by the Trump administration's tariff approach. On top of that, the federal government is cutting budgets. This is worrying because delivers AI solutions centered around national security and infrastructure. Consequently, the bulk of company revenue comes from federal government contracts. Adding to this mix, in March, disclosed a material weakness in its internal controls for financial reporting, contributing to the company's share price decline. As a result, the company restated the last few years' worth of financial statements. While unrelated, CFO Julie Peffer departed in June. This wasn't 2025's only leadership change. In January, gained a new CEO, Kevin McAleenan, who had served as Acting Secretary of the U.S. Department of Homeland Security during President Trump's first term. financial picture leadership changes may be a good outcome over the long run. McAleenan's experience with the previous Trump administration could help survive the government budget cuts. In addition, under the previous CEO, the company fell short of its 2024 goal to achieve at least $165 million in sales, coming in at $158.2 million last year. With McAleenan taking over, perhaps can meet its 2025 full-year revenue target, which ranges between $160 million and $180 million. He will have to succeed to win shareholder confidence in his leadership. It's too early to tell if McAleenan can deliver, since he only has the first quarter under his belt. brought in $34.8 million in Q1 sales, a 5% year-over-year increase. However, the company's balance sheet includes a sizable chunk of debt. Of its $198.5 million in total Q1 liabilities, $101.4 million was debt. Q1 total assets were 396.3 million with $107.6 million of that in cash and equivalents. Moreover, despite year-over-year sales growth, is not profitable. It exited Q1 with a net loss of $62 million. Deciding whether to buy stock It's not uncommon for tech companies to operate at a loss, but in these cases, you want to see sales growing rapidly. With just a 5% year-over-year increase in Q1 revenue, is not achieving strong growth, especially for the hot field of artificial intelligence. This raises questions about the company's ability to capture customers, let alone eventually achieve profitability. stock valuation is another factor to consider. The price-to-sales (P/S) ratio is useful for this purpose, since it measures how much investors are willing to pay for every dollar of revenue. This metric is commonly used with companies that aren't profitable. Comparing it to artificial intelligence leader Nvidia, as well as a competitor also operating in the government AI sector, helps to understand share price valuation. Data by YCharts. The chart shows P/S multiple is the lowest of the three AI companies, and it's down significantly from where it was at in February. This suggests shares are attractively valued. However, Nvidia and warrant higher valuations because of their business performance. For example, Nvidia's revenue rose 69% year over year to $44.1 billion in its fiscal Q1, ended April 27. Meanwhile, revenue of $108.7 million in its fiscal fourth quarter, ended April 30, represented a 26% year-over-year increase. mediocre AI revenue growth, debt, and the factors that led to its share price decline this year means investing in the company is risky. As a result, it's best to hold off buying. Instead, watch its business performance over the next few quarters to see if it can strengthen sales before reconsidering stock. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
11-06-2025
- Business
- Yahoo
BigBear.ai enters collaboration with Analogic
(BBAI) announced its collaboration with Analogic. Together, the companies have integrated advanced computer vision screening capabilities with Analogic's cutting-edge Computed Tomograph scanner technology to enhance threat detection and streamline airports' security operations worldwide. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on BBAI: Disclaimer & DisclosureReport an Issue Announces CFO Departure and Interim Appointment CFO Julie Peffer to depart, Sean Ricker named interim CFO Stock (BBAI): The Russell 2000 AI Contender Could Deliver over 50% Gains Files New Prospectus for Share Sales Holdings Concludes 2025 Annual Shareholder Meeting Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
