big bear.ai (NYSE:BBAI) The stock has exploded higher in trading this week. The company’s shares ended the quarter up 47.6%, according to data from S&P Global Market Intelligence.
BigBear.ai makes progress this week after publishing report economic times Detailed report suggests the company could be next Palantir In terms of stock compensation. The company’s shares also rose following news that President-elect Trump plans to appoint venture capitalist David Sacks as his administration’s artificial intelligence (AI) and cryptocurrency czar.
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December 2, economic times published an article examining the latest reports on BigBear.ai stock and raising the possibility that the software specialist could deliver Palantir-like returns. For reference, Palantir stock is up about 345% in 2024 trading. Meanwhile, BigBear.ai’s stock price rose 58% during this period.
Following the comparison, Palantir announced a new partnership, which has had a bullish ripple effect on valuations in the AI software industry. Palantir is working with Booz Allen Hamilton Leveraging artificial intelligence and other technologies to accelerate defense industry innovation. The company is also working with Shield AI to develop autonomous driverless vehicles for defense purposes.
Palantir’s new defense deal helped spur more gains in BigBear.ai stock, with some investors betting the smaller software company could soon land more contracts in the field. The two companies did build on an existing partnership to integrate their respective software products to improve data collection and analytical insights.
In addition to the big gains from the Palantir-related story, BigBear.ai’s stock also got a boost from Trump’s announcement of plans to appoint Sachs as artificial intelligence and cryptocurrency czar. This move was widely interpreted as a signal that the new Trump administration will take a proactive approach to promote the progress of the artificial intelligence industry.
But while BigBear.ai stock has seen bullish catalysts on multiple fronts over the past week, the sharp gains have also pushed the company’s risk profile higher. Notably, the software specialist has seen an explosive surge in valuation over the past week, despite little news of substance to the business. With the business still losing money and currently valued at about five times this year’s expected sales, the stock looks risky after a sharp rise.
