What's Going On With BigBear.ai Stock?

BigBear.ai, Inc. BBAI shares are trading higher Tuesday, and the stock has gained more than 50% over the past two days. Here's a look at what's going on.

What To Know:

BigBear.ai shares may be rising on continued volatility among AI-related companies following Nvidia's blockbuster fourth-quarter earnings report last week. BigBear.ai provides AI-powered decision intelligence solutions in supply chains and logistics, autonomous systems and cybersecurity. 

Cantor Fitzgerald analyst Yi Fu Lee maintained BigBear.ai with an Overweight rating and maintained a $3 price target on the stock on Tuesday. 

BigBear.ai shares are moving on heavy trading volume with more than 22.8 million shares already traded in the session. According to data from Benzinga Pro, 17.97% of available shares are being sold short, which may be contributing to the stock's move. 

BigBear.ai is set to report its fourth-quarter financial results after the market close on March 7. According to estimates from Benzinga Pro, the company is expected to report losses of 5 cents per share and quarterly revenue of $41.74 million. 

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BBAI Stock Forecast In 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For BigBear.ai, over the past 5 years, it's annualized stock performance is -24.01%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $0.78.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

BBAI Price Action: According to Benzinga Pro, BigBear.ai shares are up 22.7% at $3.05 at the time of publication.

Image: Brian Penny from Pixabay