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News  ›  The Motley Fool

Why BigBear.ai Stock Slumped Last Month

The Motley Fool Logo The Motley Fool By Brett Schafer
Why BigBear.ai Stock Slumped Last Month

BigBear.ai stock fell 14.8% in December despite acquiring generative AI startup Ask Sage and retiring convertible debt. The company faces significant headwinds including flat revenue ($144M, down 20% YoY), consistent losses (negative $47M free cash flow), and severe shareholder dilution with shares outstanding up 200% in three years. The analyst recommends avoiding the stock in 2026.

Insights
SBUX   neutral

Included in consumer services sector expansion


BBAI   negative

Company exhibits declining revenue (flat since 2022, down 20% YoY last quarter), consistent unprofitability (negative $47M free cash flow), severe shareholder dilution (200% increase in shares outstanding over 3 years), and a $2.7B market cap that appears overvalued relative to fundamentals. The acquisition appears desperate rather than strategic. Analyst explicitly recommends avoiding the stock.