Palantir Technologies Was it the best performance stock S&P 500 And NASDAQ-100 In the first half of 2025. Stocks increased by 80% in the first six months of the year – and 427% in the last 12 months – Palantir Artificial Intelligence (AI) and the defense agreement drew attention.
Palantir is far from the only company that wants to disrupt the defense technology. A little known competitor to the company Bigbear.ai(NYSE: BBAI)Last year, stocks are 357% impressive.
Bigbear.ai can it appear as the next palantir? Continue reading to learn.
Bigbear.ai’s share price volatility has been imitating a Rollercoaster movements this year. Initially, after the opening of President Donald Trump and the next statement, stocks rose significantly. Project Stargate – A infrastructure initiative aimed at investing $ 500 billion in AI projects by 2029.
Although reduced expenditures from the Ministry of Defense (DOD) are initially seen as a major blow to contradictions such as Bigbear.ai, the trends shown above show that the stocks are back sharply-implying that sales can be exaggerated in February. Why?
In my eyes, the defense secretary Pete Hegseth, who contributed greatly to the healing of defense stocks, came after explaining the intention to double a strategy called the software acquisition (SWP).
In fact, Dod’s budget cuts focus on areas that are considered unnecessary or inefficient. For example, Pentagon released billions of capital by reducing spending with consulting companies. BOOZ Allen Hamilton– EmphasisAnd Deloitte. In addition, a contract that revolves around a HR Software System managed by Prophecy It was also cut.
Under the SWP, Dod seems to want to release capital to double more technology -oriented initiatives and to define sellers who can perform the Pentagon’s sophisticated workflows.
With a lot of opportunities to grab, optimistic investors are likely to see it as a tail wind for Bigbear.ai. This logic is not too far.
Kevin Mcaleenan, a CEO of Bigbear.ai, a former government official with close ties with the Trump administration. When Mcaleenan’s strategic relations in the government are combined with DOD’s focus on work with leading software services providers, Bigbear.ai has some investors who buy the idea that it will not fly under the radar for longer.
Image Source: Getty Images.
The graph below disrupts the income for Bigbear.ai last year, gross profit margin and net income. With only $ 160 million sales, the company tends to create inconsistent gross margins with less than 30%. Moreover, it is not surprising to see that Bigbear.ai’s losses continue to increase with a quite small sales base and an impressive margin profile.
In contrast, Palantir provided government revenue of $ 487 million in the first quarter of 2025. In other words, Palantir’s operation increases the amount of income in a single quarter in a single quarter of Bigbear.ai. Furthermore, Palantir’s gross margins were around 80%and the company’s net income in the last 12 months was over $ 570 million.
Currently, Bigbear.ai is traded at a price-sale (P/s) of around 11. Although this seems to be “cheap” compared to Palantir’s 120 p/s floors, there is a reason for the valuation inequality between the two AI defense contractor.
Palantir has large, fast -growing public and private sector enterprises managing strong profit margins. On the other hand, Bigbear.ai will have difficulty in scaling as long as it continues to burn with cash heaps.
I don’t see not only the bigbear.ai stock, but also the company is the next. Palantir, in the field of defense technology in his own league and I do not see Bigbear.ai as a great challenge.
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Man spatacco Palantir technologies have positions. Motley Fool positions and proposes to Abbott Laboratoies, Accenture Plc, Oracle and Palantir Technologies. Motley Fool’s Explanation policy.
