BigBear.ai (NYSE: BBAI) stocks see another day of huge gains in Friday’s trading. The company’s stock price was up 20% as of 12:15 p.m. ET and had risen as much as 26.9% earlier in the daily session.
While there doesn’t appear to be any direct, company-specific news pushing BigBear.ai stock higher today, the company’s stock price may rise in tandem with the news that Palantir Technologies (NASDAQ:PLTR) has formed a new partnership of Booz Allen Hamilton to accelerate U.S. defense technologies. BigBear has a partnership with Palantir, and recently a narrative connection has emerged between the two stocks that has helped boost the latter company’s valuation.
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Palantir and Booz Allen Hamilton today issued a joint press release announcing they were working together to advance innovation in America’s defense mission. Palantir stock is up 6% at the time of writing on the news.
BigBear.ai and Palantir had previously announced a partnership to advance machine learning technologies and integrate some of the two companies’ respective capabilities to “extend the operating system for the modern enterprise with data and AI that provides advice and other actionable insights for complex business decisions. While it is possible that contract wins for Palantir will provide significant transfer benefits for BigBear, that will not be true in all cases.
Shares of BigBear.ai have subsequently gained momentum this week The Economic Times published a report raising the possibility that the company’s stock could post performance gains comparable to the incredible run Palantir shares have had this year. At the time of writing, Palantir shares are up about 343% in 2024 trading.
But BigBear.ai investors might want to pump the brakes a bit. The company’s share price appears to be making great strides meme stock momentum, as well as expectations that the stock could be “the next Palantir.” While it’s possible that BigBear will deliver some big corporate gains that help push its valuation above current levels, the recent gains for the stock appear disconnected from its fundamental business performance and prospects.
If you’re considering buying BigBear, you should approach the stock knowing that it’s a high-risk investment.