Bigbear.ai (Nyse: bbai) is a choice of popular stock of artificial intelligence (AI) because of its status of pure game in space. There is not many investments that are only focused on AI, which attracts investors to these ideas.
Bigbear.ai is also a small business, with a market capitalization of around 1.9 billion dollars. It would not take much growth to transform this into a much larger company, but is it enough to make you a millionaire of a modest investment?
To make Bigbear.ai a millionaire, let’s say that it must deliver the yields 100 times. This would transform $ 10,000 into $ 1 million if it would reach this level of growth.
Bigbear.ai focuses on the supply of AI solutions, mainly to government entities. Although he does not name his clients, Bigbear.ai generates a large part of his income from a handful of customers, probably various government services. In 2024, 52% of income came from only four customers. This is intrinsically a problem, because one of these customers could reduce its expenses with BigBear and cause significant disorders within the company.
However, many companies have prospered with only a few customers as customers, so it is only a risk, not a disqualifier.
In addition, BigBear.ai seems to manage fairly well with some of its customers. Last year, he received a contract of $ 165 million over five years to develop the global environment of information management of the American army. This is significant development, because it generates an average of $ 33 million in revenues per year for BigBear.ai. Since its total income in the last 12 months were only $ 160 million, this contract is a huge boost for BigBear.ai.
However, he must continue to capture major contracts in order to succeed. With the repression of President Donald Trump on certain levels of public spending, this could be difficult in the near future. Consequently, Bigbear.ai faces a difficult battle. However, if he can capture a few contracts here and there, he has a massive increase potential, but he must show a certain life in the near future.
In the first quarter, BigBear’s revenues.ai increased only 5% from one year to the next to 34.8 million dollars. Given the importance of AI, this seems to be an incredibly slow growth rate. However, its backwards increased by 30% from one year to the next to 385 million dollars, which indicates the strength to capture new contracts. Bigbear.ai must begin to recognize certain income from these contracts, because growth of 5% will not be enough, especially when other competitors offer much higher levels.
