AI Stocks Surge: BigBear.ai and C3.ai Under Scrutiny

AI stocks continue to rise with Palantir seeing a 340% increase in 2024. However, challenges lie ahead for BigBear.ai and C3.ai, with differing analyst ratings indicating potential volatility for investors.

Date: 19-01-2025

AI Rating: 5

Earnings Per Share (EPS)
Neither BigBear.ai nor C3.ai provided explicit EPS figures in the report, rendering a direct assessment impossible.
Revenue Growth
BigBear.ai's revenue was approximately $114.5 million for the first nine months of 2024, comparable to the previous year's figures, indicating a lack of revenue growth. In contrast, C3.ai reported a 29% revenue growth in its last quarter and a nearly 24% increase over the first half of the fiscal year compared to the prior year.
Net Income
The report reveals that BigBear.ai is not profitable yet and has incurred higher losses in 2024 due to an $85 million goodwill impairment charge. C3.ai's losses have only narrowed by about 4%, showing difficulties in achieving profitability.
Profit Margins
The analysis mentions that C3.ai is experiencing a 'subpar growth-plus-margin performance,' reflecting concerns about its profitability relative to growth metrics. BigBear.ai's inability to generate positive earnings further highlights its challenging position in terms of profit margins.
Free Cash Flow (FCF)
No details are provided in the text regarding free cash flow for either company, limiting the ability to evaluate this aspect.
Return on Equity (ROE)
Information on return on equity is not mentioned in the report, thus precluding an analysis of this metric. Overall, while both companies operate in the growing AI sector, they face distinct challenges. C3.ai shows promising revenue growth but struggles with profitability and high valuations, leading to mixed analyst ratings. BigBear.ai, despite analysts forecasting potential upside, shows stagnant revenue growth and increasing losses.

Stocks: BBAI AI