Why BigBear.ai (BBAI) Went Up On Friday?

We recently published a list of 10 Firms Post Double-Digit Gains on Friday. In this article, we are going to take a look at where BigBear.ai Holdings, Inc. (NYSE:BBAI) stands against other firms that posted double-digit gains on Friday.

The stock market fell into the red territory on Friday, with all major indices recording losses over renewed fears of growing trade tensions coupled with expectations of a higher inflation rate in the US.

The Dow Jones lost 0.99 percent, the S&P 500 declined 0.95 percent, while the tech-heavy Nasdaq dived by 1.36 percent.

Despite the overall pessimistic sentiment, 10 companies managed to defy losses, posting double-digit gains in their valuations amid a flurry of impressive earnings performance.

To come up with Friday’s top winners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A closeup of a computer server rack surrounded by a CAT5 network of cables.

BigBear.ai Holdings, Inc. (NYSE:BBAI)

BigBear.ai Holdings, Inc. (NYSE:BBAI) jumped by 26.88 percent on Friday to end at $8.59 each as investor sentiment was buoyed by news that it bagged a contract from the Department of Defense to advance its Virtual Anticipation Network (VANE) prototype.

The VANE prototype, which would use AI and machine learning, would compile vast amounts of data to forecast adversary actions in multi-domain environments and support US military and intelligence operations.

It would allow BigBear.ai Holdings, Inc. (NYSE:BBAI) to support the Office of the Secretary of Defense in utilizing custom AI models to enhance its foreign news media assessment and analysis of countries that are deemed as US potential enemies.

Originally developed in collaboration with the Irregular Welfare Technical Support Directorate, VANE achieved “awardable” status on the CDAO Tradewinds Solutions Marketplace in April 2024.

Overall, BBAI ranks 2nd on our list of firms that posted double-digit gains on Friday. While we acknowledge the potential of BBAI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BBAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.