Latest news with #BigBearAI
Yahoo
08-07-2025
- Business
- Yahoo
Why BigBear.ai Stock Skyrocketed 63.2% Last Month, and Has Kept Surging in July
Bullish momentum for the broader market and excitement surrounding defense artificial intelligence (AI) technologies powered huge gains for stock in June. also announced new partnerships and deployments for its biometric-identification systems at major airports. stock has continued to move higher in July's trading, and one investment firm sees the stock reaching $9 per share. 10 stocks we like better than › (NYSE: BBAI) enjoyed a huge rally across June's trading as investors became increasingly bullish on growth-dependent tech plays. The company's share price rose 63.2% in the month amid a gain of 5% for the S&P 500 (SNPINDEX: ^GSPC) and a gain of 6.6% for the Nasdaq Composite (NASDAQINDEX: ^IXIC), according to data from S&P Global Market Intelligence. stock surged in June as macroeconomic indicators aligned to support a bullish rally for the market and investors poured into defense-focused artificial intelligence (AI) stocks. The company's share price also got a big boost from positive analyst coverage. Investors bid up growth stocks last month, as comments from key Federal Reserve officials increasingly pointed to the possibility that the central bank will cut interest rates in July. Economic data along some key fronts suggested the Fed may be gearing up to deliver more rate cuts than previously anticipated this year, and some lessening of geopolitical tensions in the Middle East also helped support a rally for the broader market that added to gains for stock. There were also some business-specific developments that helped support gains in the software specialist's valuation last month. The company announced new partnerships with Easy Lease PJSC and Vigilix Technology to accelerate the development and deployment of AI-based technologies, and a partnership with machine-vision specialist Analogic for threat detection at airports. also announced that biometric identification stations from its Pangiam division had been deployed at major international airports. Despite some volatility, stock has continued to see strong gains in July. As of this writing, the company's share price has risen 15.5% in the month and has benefited from positive analyst coverage and ongoing excitement surrounding defense AI opportunities. In new coverage published July 1, H.C. Wainwright maintained a buy rating on and raised its one-year price target on the stock from $6 to $9 per share. The investment firm's analysts expect that winning new customers and landing expanded deals with clients already using its services will pave the way for the stock's rally to continue. As of this writing, hitting H.C. Wainwright's target of $9 per share would mean additional stock price gains of roughly 15%. Following recent gains, stock is now up roughly 73% across 2025's trading -- but it's also still down 21% from its peak across the stretch. While the company's valuation has been surging and business performance is expected to pick up in this year's second half, speculative excitement has played a significant role in powering the run-up for the stock. still has big upside potential if the business effectively capitalizes on rising demand for AI-powered defense software, but the company also still has a lot of proving to do. Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Stock Skyrocketed 63.2% Last Month, and Has Kept Surging in July was originally published by The Motley Fool
Yahoo
08-07-2025
- Business
- Yahoo
SoundHound AI Vs. BigBear.ai: Which Stock Is the Better Buy?
Shares of SoundHound AI, Inc. SOUN and Holdings, Inc. BBAI have soared 182.2% and 423.7% over the past year due to the rapid growth of artificial intelligence (AI). Let's explore which of these AI stocks investors should prioritize for future returns. SoundHound AI reported first-quarter revenues of $29.1 million, a 151% increase year over year. SoundHound AI anticipates 2025 revenues of $157 million to $177 million, up from last year's $84.7 million. SoundHound AI's 2024 booking backlog of $1.2 billion suggests strong long-term revenue growth, alongside a total addressable market (TAM) of $140 billion, indicating potential for further expansion. Demand for SoundHound AI's voice solutions is growing due to their efficiency and automation benefits. The conversational AI market is projected to grow from $17.05 billion in 2025 to $49.80 billion by 2031, per marketsandmarkets, offering opportunities for increased customer acquisition. Rising customer demand for quick service and labor shortages are driving restaurants to adopt voice automation, benefiting SoundHound AI, which now counts Casey's General Stores, Inc. CASY and Chipotle Mexican Grill, Inc. CMG among its clients. Finally, if trade tensions ease, SoundHound AI's overseas costs, particularly in China, will decrease, benefiting its bottom line. AI shipbuilding software supports U.S. Navy submarine construction, and its facial recognition technology is used in airport security. The company reported $34.8 million in first-quarter revenues, a 5% year-over-year increase. For the full year, expects revenues to increase to $160-$180 million. In 2025, experienced leadership changes, with Kevin McAleenan becoming CEO in January and the CFO departing in June; McAleenan's prior role as U.S. Homeland Security Secretary may aid in securing government contracts. Despite revenue growth, SoundHound AI and are unprofitable, with losses of $188 million and $62 million in the past 12 months and the first quarter, respectively. adjusted EBITDA worsened from -$1.6 million to -$7 million due to increased R&D spending. However, SoundHound AI's first-quarter revenue growth significantly outpaces with a robust balance sheet showing negligible debt, total assets of $587.5 million, and $245.8 million in cash exceeding total liabilities of $190.5 million. On the other hand, had total liabilities of $198.5 million in the first quarter, including $100.6 million in long-term debt. weak sales growth and balance sheet hinder profitability, while SoundHound AI's strong sales and healthy balance sheet suggest profitability by the end of 2025. Moreover, relies heavily on federal contracts, making it vulnerable to cuts, while SoundHound AI is less exposed to such risks, making it a better AI investment choice. Having said that, backlog rose 30% year over year to $385 million in the first quarter, fueled by new government contracts, indicating potential growth and investment opportunity. Currently, each of the stocks has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Holdings, Inc. (BBAI) : Free Stock Analysis Report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Yahoo
08-07-2025
- Business
- Yahoo
SoundHound AI Vs. BigBear.ai: Which Stock Is the Better Buy?
Shares of SoundHound AI, Inc. SOUN and Holdings, Inc. BBAI have soared 182.2% and 423.7% over the past year due to the rapid growth of artificial intelligence (AI). Let's explore which of these AI stocks investors should prioritize for future returns. SoundHound AI reported first-quarter revenues of $29.1 million, a 151% increase year over year. SoundHound AI anticipates 2025 revenues of $157 million to $177 million, up from last year's $84.7 million. SoundHound AI's 2024 booking backlog of $1.2 billion suggests strong long-term revenue growth, alongside a total addressable market (TAM) of $140 billion, indicating potential for further expansion. Demand for SoundHound AI's voice solutions is growing due to their efficiency and automation benefits. The conversational AI market is projected to grow from $17.05 billion in 2025 to $49.80 billion by 2031, per marketsandmarkets, offering opportunities for increased customer acquisition. Rising customer demand for quick service and labor shortages are driving restaurants to adopt voice automation, benefiting SoundHound AI, which now counts Casey's General Stores, Inc. CASY and Chipotle Mexican Grill, Inc. CMG among its clients. Finally, if trade tensions ease, SoundHound AI's overseas costs, particularly in China, will decrease, benefiting its bottom line. AI shipbuilding software supports U.S. Navy submarine construction, and its facial recognition technology is used in airport security. The company reported $34.8 million in first-quarter revenues, a 5% year-over-year increase. For the full year, expects revenues to increase to $160-$180 million. In 2025, experienced leadership changes, with Kevin McAleenan becoming CEO in January and the CFO departing in June; McAleenan's prior role as U.S. Homeland Security Secretary may aid in securing government contracts. Despite revenue growth, SoundHound AI and are unprofitable, with losses of $188 million and $62 million in the past 12 months and the first quarter, respectively. adjusted EBITDA worsened from -$1.6 million to -$7 million due to increased R&D spending. However, SoundHound AI's first-quarter revenue growth significantly outpaces with a robust balance sheet showing negligible debt, total assets of $587.5 million, and $245.8 million in cash exceeding total liabilities of $190.5 million. On the other hand, had total liabilities of $198.5 million in the first quarter, including $100.6 million in long-term debt. weak sales growth and balance sheet hinder profitability, while SoundHound AI's strong sales and healthy balance sheet suggest profitability by the end of 2025. Moreover, relies heavily on federal contracts, making it vulnerable to cuts, while SoundHound AI is less exposed to such risks, making it a better AI investment choice. Having said that, backlog rose 30% year over year to $385 million in the first quarter, fueled by new government contracts, indicating potential growth and investment opportunity. Currently, each of the stocks has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Holdings, Inc. (BBAI) : Free Stock Analysis Report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
07-07-2025
- Business
- Globe and Mail
2 Hot AI Stocks to Sell Before They Fall 25%, According to Wall Street Analysts
Key Points AI stocks have soared in the last year, making some of them overvalued. Palantir has an extreme price-to-sales ratio that makes it a dangerous stock to own. is a struggling business being propped up by an AI narrative. 10 stocks we like better than Palantir Technologies › Everyone has fallen in love with artificial intelligence (AI) stocks, and for good reason. But that does not mean investors should buy stakes in these companies and ignore valuation, which always matters in the long run. Plenty of AI stocks have soared by three-figure percentages in the last year. This makes them dangerous to buy if you ignore fundamental analysis. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Palantir Technologies (NASDAQ: PLTR) and (NYSE: BBAI) are two hyped AI stocks that are up big in the last year. Wall Street analysts -- who typically give aggressive price targets -- have consensus targets for both stocks that are 25% below where they trade today. Here's why investors who own Palantir and should sell right now. Palantir's extreme valuation Palantir is one of the fastest growing software and AI businesses in the world. It works with governments, large organizations, and big businesses to organize and analyze reams of data using AI. This has led to some tremendous growth. Last quarter, its total revenue rose 39% year over year to $884 million. U.S. revenue grew 55%, while U.S. commercial revenue grew an astonishing 71% year over year, which shows how fast AI applications are growing in this country. Palantir is also highly profitable, generating 20% operating margins last quarter, or $176 million in operating income. Investors have fallen in love with the stock. It's up almost 400% in the last 12 months, crushing the market averages and making shareholders wealthier. Today, it trades at a market cap of $317 billion, making it one of the largest companies in the world by market capitalization. Wall Street is now cautious about Palantir's prospects, with a price target of $107.90 compared to the current share price (at the time of this writing) of around $135. I believe the downside may be even more severe in the years to come. Palantir's stock trades at a price-to-sales ratio (P/S) of 107, which puts unsustainable expectations on the future growth of the business. Why? Let's do some quick math to illustrate. The company's trailing revenue is $3.11 billion. Even if it can multiply its revenue tenfold over the next 10 years -- a scenario that is unlikely unless you are extremely optimistic about its prospects -- it will be doing around $31 billion in revenue a decade from now. If Palantir generates 30% profit margins in 10 years, that will equate to around $10 billion in annual earnings, or a price-to-earnings ratio (P/E) above 30 compared to the current market cap (P/E takes market cap and divides by earnings). This makes the shares extremely overvalued. Even if the most optimistic growth scenario plays out, the stock will likely not be much higher in 10 years' time. Sell it at its P/S ratio above 100. BBAI PS ratio, data by YCharts. Burning cash flow and low growth With AI in its name, has been a thematic stock for investors. It is up even more than Palantir in the last year, for a 441% gain for shareholders at the time of this writing. Analysts have a consensus price target of $5.83 compared to its present price of $7.75. The company offers AI-powered decision guidance for businesses. That is eerily similar to Palantir and is something that investors are falling head over heels to put into their portfolios today. With a P/S of 12, is not nearly as extreme as Palantir at 107. However, the business looks a lot weaker than its competitor. Revenue growth is slow. Last quarter, sales increased only 5% to $34.8 million. Margins are weak: Gross margin is only 21.3% compared to the typical software/digital company above 50% or more. Free cash flow was a negative $42 million over the last 12 months and has never been positive. is barely growing even during a time when the AI industry is expanding like gangbusters. This indicates to me that the company is not a leader in its space and is struggling versus the competition. Combined with low profit margins and negative free cash flow, it's a sell after its meteoric rise in the last 12 months. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, 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 Palantir Technologies 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 $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%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 July 7, 2025
Yahoo
07-07-2025
- Business
- Yahoo
2 Hot AI Stocks to Sell Before They Fall 25%, According to Wall Street Analysts
AI stocks have soared in the last year, making some of them overvalued. Palantir has an extreme price-to-sales ratio that makes it a dangerous stock to own. is a struggling business being propped up by an AI narrative. 10 stocks we like better than Palantir Technologies › Everyone has fallen in love with artificial intelligence (AI) stocks, and for good reason. But that does not mean investors should buy stakes in these companies and ignore valuation, which always matters in the long run. Plenty of AI stocks have soared by three-figure percentages in the last year. This makes them dangerous to buy if you ignore fundamental analysis. Palantir Technologies (NASDAQ: PLTR) and (NYSE: BBAI) are two hyped AI stocks that are up big in the last year. Wall Street analysts -- who typically give aggressive price targets -- have consensus targets for both stocks that are 25% below where they trade today. Here's why investors who own Palantir and should sell right now. Palantir is one of the fastest growing software and AI businesses in the world. It works with governments, large organizations, and big businesses to organize and analyze reams of data using AI. This has led to some tremendous growth. Last quarter, its total revenue rose 39% year over year to $884 million. U.S. revenue grew 55%, while U.S. commercial revenue grew an astonishing 71% year over year, which shows how fast AI applications are growing in this country. Palantir is also highly profitable, generating 20% operating margins last quarter, or $176 million in operating income. Investors have fallen in love with the stock. It's up almost 400% in the last 12 months, crushing the market averages and making shareholders wealthier. Today, it trades at a market cap of $317 billion, making it one of the largest companies in the world by market capitalization. Wall Street is now cautious about Palantir's prospects, with a price target of $107.90 compared to the current share price (at the time of this writing) of around $135. I believe the downside may be even more severe in the years to come. Palantir's stock trades at a price-to-sales ratio (P/S) of 107, which puts unsustainable expectations on the future growth of the business. Why? Let's do some quick math to illustrate. The company's trailing revenue is $3.11 billion. Even if it can multiply its revenue tenfold over the next 10 years -- a scenario that is unlikely unless you are extremely optimistic about its prospects -- it will be doing around $31 billion in revenue a decade from now. If Palantir generates 30% profit margins in 10 years, that will equate to around $10 billion in annual earnings, or a price-to-earnings ratio (P/E) above 30 compared to the current market cap (P/E takes market cap and divides by earnings). This makes the shares extremely overvalued. Even if the most optimistic growth scenario plays out, the stock will likely not be much higher in 10 years' time. Sell it at its P/S ratio above 100. With AI in its name, has been a thematic stock for investors. It is up even more than Palantir in the last year, for a 441% gain for shareholders at the time of this writing. Analysts have a consensus price target of $5.83 compared to its present price of $7.75. The company offers AI-powered decision guidance for businesses. That is eerily similar to Palantir and is something that investors are falling head over heels to put into their portfolios today. With a P/S of 12, is not nearly as extreme as Palantir at 107. However, the business looks a lot weaker than its competitor. Revenue growth is slow. Last quarter, sales increased only 5% to $34.8 million. Margins are weak: Gross margin is only 21.3% compared to the typical software/digital company above 50% or more. Free cash flow was a negative $42 million over the last 12 months and has never been positive. is barely growing even during a time when the AI industry is expanding like gangbusters. This indicates to me that the company is not a leader in its space and is struggling versus the competition. Combined with low profit margins and negative free cash flow, it's a sell after its meteoric rise in the last 12 months. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies 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 $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. 2 Hot AI Stocks to Sell Before They Fall 25%, According to Wall Street Analysts was originally published by The Motley Fool
