BigBear.ai (NYSE:BBAI) The stock is seeing another day of huge gains in Friday 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 shares higher today, the company's stock price could rise in conjunction with the announcement according to which Palantir Technologies (NASDAQ:PLTR) has formed a new partnership with Booz Allen Hamilton to accelerate American defense technologies. BigBear has a partnership with Palantir, and a narrative connection recently emerged between the two stocks that helped drive the latter company's valuation higher.
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Palantir and Booz Allen Hamilton today issued a joint press release announcing that they are partnering to promote innovation in U.S. defense missions. Palantir stock is up 6% as of this writing.
BigBear.ai and Palantir previously announced a partnership to advance machine learning technologies and integrate some of the two companies' respective capabilities to “extend the modern enterprise operating system with data and AI that provide advice and other actionable insights for complex business decisions. “While it is possible that contracts won by Palantir will end up having significant benefits for BigBear, this will not be true in all cases.
BigBear.ai stock got a boost this week after Economic times released a report raising the possibility that the company's shares could see performance gains comparable to the incredible rise that Palantir shares have enjoyed this year. As of this writing, Palantir stock is up about 343% in total trading in 2024.
But BigBear.ai investors may want to pump the brakes a bit. The company's stock price appears to be making big moves meme stock momentum, as well as expectations that the title could be “the next Palantir.” While it's possible that BigBear will generate big-company gains that will help push its valuation above current levels, the stock's recent gains appear to be disconnected from the company's fundamental performance and outlook conditions.
If you are considering buying BigBear, you should approach the stock knowing that it is a high-risk investment.
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