Summary
- BigBear.ai’s stock surged over 100% due to a Department of Defense deal, but it’s driven by speculation and may decline.
- BBAI is similar to Palantir but lacks profitability and a compelling product portfolio, making it a risky investment.
- The stock is overvalued and overbought; a favorable entry point might be around $5, supported by technical indicators.
- While BBAI has potential, I recommend waiting for the hype to die down and the price to retrace before investing.
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Thesis Summary
BigBear.ai Holdings, Inc. (NYSE:BBAI) has seen its stock skyrocket in the last week, following a deal with the Department of Defense and also perhaps riding on the momentum. Sometimes technicals and fundamentals line up, and these produce great risk-reward opportunities. James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.
The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.
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