DD: Big Bear AI ($BBAI) - palantir 2.0
I’m looking for the regardedest, lowest, humblest of you to confirm the way.
- Big brains didn’t agree when "geneman7" said PLTR bumpy revenues weren’t a concern (2022).
- Big brains didn’t agree when "geneman7" said get into Bitcoin before the wall street wave (2017).
- Big brains didn’t agree when "geneman7" said Tesla revenues were about to go parabolic (2017).
It’s true when they say Bears sound smart at parties, but the bulls make money. Ironically in Big Bear AI the bears will eventually become bulls.
So, fellow idiots, I think we have another winner and PLTR 2.0. Time to get hyped.
Big Bear AI ($BBAI): 1.8b market cap - Float 173M Short 37.4M = 21.6% SI
BBAI started as a SPAC in 2021 and besides a few spikes it was only downward trajectory. Until now, a huge spike in stock price and currently holds above the 52wk high.
Strengths:
- Innovative Technology: BBAI leverages advanced AI and machine learning capabilities to transform complex data into actionable insights, enhancing decision-making processes across various industries.
- Diverse Client Base: The company serves multiple sectors, including defense, healthcare, and finance, diversifying its revenue streams and reducing dependence on any single market.
- Established Government Contracts: BigBear.ai has secured significant contracts with federal government agencies, providing a stable revenue stream and long-term growth potential.
- Strategic Acquisitions: The acquisition of Pangiam in February 2024 expanded BigBear.ai's capabilities and market presence, particularly in security and intelligence solutions.
Weaknesses:
- Financial Challenges: As of the third quarter of 2024, BigBear.ai reported an accumulated deficit of $462 million, with operating cash flow remaining negative over recent years.
Now the spicy stuff:
- Ties to Trump administration
New CEO Kevin McAleenan is best known for his role as the Acting Secretary of the U.S. Department of Homeland Security (DHS). McAleenan also was the Commissioner of U.S. Customs and Border Protection (CBP).
Words of Trump himself: “I will declare a national emergency at our southern border. All illegal entry will immediately be halted, and we will begin the process of returning millions and millions of criminal aliens back to the places in which they came,” Guess which company will benefit of this.
- Pangiam acquisition = Vision AI - CHECK THEIR WEBSITE and what they are doing
Vision AI is increasingly being used in border control
- Jim Cramer said no
TLDR:
My bet is BBAI has a greater than 50% chance for growth reacceleration. Government contracts will start flowing in and airports will adopt BBAI's AI software completely.
Seeing Palantir at a 230b valuation makes me think BBAI is just getting started
None of this is financial advice. I may or may not know what I’m doing.
Positions:
And yes besides bears I also like Gorilla's