Palantir Technologies (Nasdaq: Pltr) is a data analysis company that experiences significant revenue growth due to artificial intelligence (AI). During this time, she has been in the tear in the last 12 months, rising about 270% during this time. He has established himself as one of the best AI shares he possesses.
A much smaller stock that is also involved in data analysis and AI, which is also hot from late, is Bigbear.ai (Nyse: bbai)S His 60% profits in the last year Palantir path – especially after a steep decline in February – but a similar trajectory followed. Can this action continue to follow in Palantir’s footsteps and generate huge profits for investors in the long run?
Government agencies use Palantir platform for the purposes of analyzing data and efforts to combat terrorism. Bigbear.Ai provides deals with the federal government, as this has the potential to be a great growth for its business. On February 5, he announced that he had won a contract with the Ministry of Defense, which would help geopolitical risk analysis. Personalized AI models will evaluate and analyze news media in countries that can be foreign opponents to identify trends and topics interested.
Bigbear.Ai also offers biometric biometric solutions that can be useful for government agencies. She recently provided a deal with SoftPointPay, which offers payment solutions for companies around the world. Bigbear.Ai’s biometric technologies will help SoftPointPay protect business and users against fraud and identity theft.
Investors are scourges in these recent developments, sending shares to Bigbear.Ai to new 52-week maximums in recent weeks.
With only $ 1.4 billion in a market cap, Bigbear.Ai is nowhere close to the size of Palantir, whose estimate is north of $ 200 billion. But as Palantir has shown, investors are ready to pay a significant premium for a fast growing business, especially the one that can benefit from AI and data analysis. Palantir shares are traded more than 470 times larger than its revenue and almost 80 times larger than its revenue.
Bigbear.Ai is not almost profitable – it has been losses for a total of $ 170 million over the next 12 months – but as the business scale, it can change. In its latest profit report, the company’s quarterly revenue amounts to $ 41.5 million for the period ending on September 30, which increased by 22% compared to a year. For comparison, Palantir expects its top line to increase at 31% for the current year, with its revenue for year’s age over $ 3.7 billion.
There are many similarities between Palantir and Bigbear.Ai, although the latter is definitely far earlier in growth than the first is. The good news for investors who are bulls in Bigbear.Ai’s shares is that given the excitement in AI and data analysis, even if the business does not generate hundreds of millions of dollars in sales, it may not be necessary to see its estimate to take it. Investors may be ready to pay a business premium if they see signs that it can also benefit from a jump in government business and AI -related search.
However, these types of shares will only be suitable for high -risk investors. There is a lot of potential instability here, especially when prices go out of control and it becomes difficult to justify assessments based on revenue or profits. Although it may be exciting to ride a bishop all the way up, it can also be difficult to see that the shares fall on bad news or a profit report.
It is too early to say whether Bigbear.Ai can be the next Palantir and grow to more than $ 200 billion, as his operations are still too small and is not close to profitability anywhere. But even this does not generate the same level of revenue or profit as Palantir does, it may not be surprising to see how retail investors gather quickly around this AI action, hoping that it is becoming the next hot purchase in technology. However, for the greater part of the investors, however, the more favorable option is to stay on the sidelines for the time being.
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David Jagielski has no position in any of the mentioned shares. Motley Fool has positions and recommends Palantir Technologies. Motley Fool has a policy of disclosure.
Is it possible for Bigbear.Ai’s shares to be the next Palantir technologies? Originally published by Motley Fool
