BigBear.ai (NYSE: BBAI) Stock prices are rising in Thursday’s trading. The company’s stock price was up 12.8% as of 3:15 PM ET and had risen as much as 22.6% earlier in the day’s session.
BigBear.ai is rising today on meme stock momentum. Meme stocks have been enjoying bullish energy lately, and BigBear’s stock price recently exploded following a report that raised the possibility that the company could be next. Palantir.
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On December 2 The Economic Times published an article discussing Bigbear.ai and whether the stock had the potential to deliver multibagger returns comparable to the recent gains of Palantir – a leader in artificial intelligence (AI) technologies. Although there was no new information in the report, the article was enough to trigger big gains for BigBear.ai’s stock price.
Coupled with expectations that next year could bring new rounds of interest rate and corporate tax cuts and a looser regulatory environment, meme stocks have been posting explosive gains lately. Shares of BigBear.ai are now up about 82% in the past month.
BigBear.ai has been an explosive winner lately, and it’s possible the company’s market-busting gains will continue in the short term. Investors are on the hunt for the next big opportunity in AI software, and the announcement of new contracts and solid financial results could push the software specialist’s valuation above current levels.
On the other hand, investors should probably move on knowing that the stock’s recent gains haven’t been driven by breakthroughs in fundamental business performance. With the company’s share price rising on stock market momentum and excitement around the broader AI software category, BigBear.ai is looking riskier after its recent rally.
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