20 Worst Performing AI Stocks of Last Week

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1. BigBear.ai Inc. (NYSE:BBAI)

Weekly Decline: 20.37%

Number of Hedge Fund Holders: 9

BigBear.ai Inc. (NYSE:BBAI) is a provider of AI-powered decision intelligence solutions. It is based in Columbia, Maryland, and offers national security, supply chain management, and digital identity solutions.

This small company has been getting mixed reviews over the years, with many investors considering the stock to not be worth investing in. BigBear.ai Inc.’s (NYSE:BBAI) revenue growth history has not been too impressive. In 2021, the company generated $146 million in revenue, and this figure only grew by 6% in 2022 to $155 million. Additionally, revenues remained flat in 2023, which was well below the $388 million projection.

This history, coupled with a difficult macroeconomic environment, has made many investors bearish when it comes to BigBear.ai Inc. (NYSE:BBAI). Additionally, one of the company’s major customers, Virgin Orbit, also went bankrupt in 2023, resulting in revenue streams becoming more constrained. This is a particularly concerning development since BigBear.ai Inc. (NYSE:BBAI) has customer concentration issues – in 2023, 49% of the company’s revenue came from only three clients. All in all, considering the current market situation surrounding AI stocks, BigBear.ai Inc. (NYSE:BBAI) may be too risky of an investment.

Nine hedge funds were long BigBear.ai Inc. (NYSE:BBAI) in the second quarter, with a total stake value of $408,000.

We believe that AI stocks hold promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones mentioned in our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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