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BigBear.ai Shares Dip: Cut Losses or Hold?

Jack KelloggAvatar
Written by Jack Kellogg
Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 3/3/2025, 2:32 pm ET 6 min read

BigBear.ai Inc.’s stock has been affected by concerns surrounding declining government contracts and increasing competition from emerging AI firms. On Monday, BigBear.ai Inc.’s stocks have been trading down by -3.3 percent.

Key Updates on Stock Movement

  • Despite Monday’s closing with a 1.5% gain, BigBear.ai Holdings witnessed a 2.1% slump during the early trading hours on Feb 11, 2025, reflecting instability.

Candlestick Chart

Live Update At 14:32:01 EST: On Monday, March 03, 2025 BigBear.ai Inc. stock [NYSE: BBAI] is trending down by -3.3%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Market dynamics suggest a reactive environment with potential challenges ahead, possibly influenced by broader economic pressures and sentiment shifts.

Recent Earnings Overview

When it comes to trading, it’s essential to focus on more than just your daily earnings. As millionaire penny stock trader and teacher, Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.” Effective trading strategies should prioritize preserving profits rather than just generating them. By ensuring you’re retaining a significant portion of your earnings, you can achieve long-term success in the trading arena.

BigBear.ai has been in the spotlight, and not just for its stock movement. Recent earnings reports have painted a vivid picture of the company’s financial health. With a total revenue of $155.16M, there’s a tangible pulse to the heart of its operations, even if it isn’t beating as strongly as investors might hope.

The company shows a stark contrast between the revenue and profitability metrics, revealing a net income of approximately negative $12M for the last quarter. This underscores a significant operational strain, further illuminated by an EBITDA loss of about $4.72M. Factors like administrative expenses, towering over $17M, hint at potentially deep-rooted inefficiencies. The ongoing challenge lies in their operating income, lingering in the red by over $10M.

BigBear.ai’s fiscal tale isn’t entirely bleak, though. There is a positive ray in its revenue of $41.5M for the quarter ending Sep 30, 2024. Nonetheless, the net loss serves as a critical reminder of the hurdles to overcome, justified by a negative gross profit margin, that stands at an austere negative mark. With key metrics revealing choppy waters, stakeholders are poised for strategic pivots in upcoming fiscal analyses.

Financial Insights and Reports

When immersing oneself in BigBear.ai’s financial labyrinth, certain aspects beckon attention. Despite recording a staggering annual revenue, the company is riddled with hurdles that raise eyebrows. The gross margin stands nonpareil, signaling inefficiencies that may beckon boardroom recalibrations.

A closer glance at cash flows divulges aggravating outflows presented by negative free cash flow figures nearing 5M, compounded by significant depreciation obligations. Balancing dividends with a markedly leveraged position compounds the financial conundrum.

Metrics such as a debt-to-equity ratio exceeding two suggest that debt undercurrents permeate corporate strategies. This insight draws attention to potential refinancing challenges should credit markets tighten. The lingering question remains: will this strategic approach be sustainable, or do alternatives beckon a more profound realignment?

More Breaking News

In looking toward equity structures and their future prospects, attention must shift to shareholder capital, itself overshadowed by overhangs from stock-based compensations. Unmistakably, dividends languish amidst uncertain investments.

Navigating Economic Currents

BigBear.ai is navigating troubled waters brought about by fluctuating markets and pressing economic uncertainties. The company’s stock retreated post an abrupt market enthusiasm on Feb 10, 2025, making stakeholders anxious over the bench of strategic recalibrations needed. As revenue generation is counterbalanced by heavy-bearing costs, one wonders whether they’re able to maneuver deftly in such tumultuous markets.

Absorbing the energy of corporate storytelling gives additional insights into underlying operational pallor and the quest for strategic equilibrium. The financial burdens pronounced in their fiscal statements reflect missed opportunities for investor confidence elevation. There lies a tale of cerebral adjustments that must pivot the underlying fiscal commandments beyond operational attrition witnessed currently.

Enshrined within trading value forecasts, seasoned analysts project laborious yet measured optimism predicated on earnings potential vis-a-vis market forces. Thus, the stock movement portends caution, chaperoned by pragmatic scaling of growth expectations against unforeseen variables impacting enterprise evaluation.

Conclusion

The market’s shifting tides and BigBear.ai’s involvement in this narrative of rise and fall offer a vivid tableau for understanding how corporate stories unsettle or stabilize shareholder perception. A dichotomy lies beneath: either early losses present an opportunity for corrective maneuvering or, contrarily, herald persisting volatility.

These contextual undercurrents press on the necessity for sharp strategic minds within BigBear.ai. The traders face a critical fork in the road: where analytics contemplates a chance for conceiving trading recalibrations or cut-and-run. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” With sentiment-sensitive stakeholders and finance aficionados, the narrative continues to unfold.

In conclusion, we remain immersed in the dye of fiscal ephemera tinged with market dynamism. How BigBear.ai continues to wade these waters will be indicative of whether they adapt to market flux profoundly or succumb to fiscal turbulence. For now, speculative precision is the golden key binding any smart trader’s analytical gaze—holding at arm’s length yet inquisitive.

This content is produced using automated systems designed to deliver timely stock news. All material is reviewed by our editorial team and is provided solely for informational and entertainment purposes. It does not constitute professional investment advice. For additional details, please refer to our [Terms of Service]

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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