Why BigBear.ai stock price soared 107.4% last month

Big Bear.ai (BBAI 2.98%) Stocks posted huge gains throughout February trading. The company’s shares closed last month up 107.4%, according to data from S&P Global Market Intelligence.

Last month, artificial intelligence (AI) stock prices showed explosive strength, and BigBear.ai also joined the rally. There was no specific business news to boost the company’s stock price, but surging interest in AI combined with strong business results from high-profile companies including: nvidia, Palantirand C3.ai It helped deliver huge gains for the stock.

Big Bear.ai stock soars due to AI craze

AI stocks were down in February. Excitement for the emerging technology category is already hot, and strong corporate earnings from some of the space’s standouts have helped boost BigBear.ai and other stocks.

Palantir reported fourth-quarter results after the market closed on February 5 and reported better sales than Wall Street targets. The company reported revenue of $608.4 million and non-GAAP (adjusted) earnings per share of $0.08. Meanwhile, the average analyst estimate calls for the dating specialist to post revenue of $602.4 million for the quarter.

Nvidia next released its own market-shaping fourth quarter report. The graphics processing leader reported its fourth quarter results on February 21 and reported sales and earnings that exceeded market expectations. The AI ​​leader reported earnings of $5.16 per share on revenue of $22.1 billion, beating average Wall Street targets of $4.64 in earnings per share and revenue of $20.6 billion.

BigBear stock also saw an uptick following C3.ai’s earnings report on February 28th. In the third quarter of the company’s current fiscal year, which ended Jan. 31, C3 posted an adjusted loss of $0.13 on revenue of $78.4 million. This performance was significantly better than the average analyst estimate, which had expected revenue of approximately $76.1 million and a loss per share of $0.28.

In addition to delivering better-than-expected quarterly results, Palantir, Nvidia, and C3.ai also issued encouraging forward guidance. Favorable demand metrics from these popular AI companies helped BigBear’s stock price soar last month.

What’s next for BigBear.ai?

Big Bear went public in the fourth quarter of 2021 through a merger with a special purpose acquisition company and has seen highly volatile trading since its debut. Despite a surge in the company’s stock price last month and a 3% gain on the first trading day of March, Big Bear’s stock price is still down about 73% from its 2022 high.

Investors won’t have to wait long to take a closer look at BigBear’s business performance and prospects. The company plans to announce fourth quarter results and hold an investor conference call after the market closes on March 7.

Management’s most recent guidance for the fourth quarter calls for revenue to be between $40.4 million and $55.4 million. At the midpoint of the guidance range, this implies revenue growth of approximately 18.6% year-over-year. Based on full-year performance, BigBear expects to finish the year with revenue between $155 million and $170 million, which would be good for growth of about 4.8% at the midpoint of its target.