BigBear AI (NASDAQ:BBAI) stock rose 30% over the weekend, as interest in artificial intelligence (AI) grew. BBAI stock started out strong this morning but slid down to just about 10% up soon after the morning bell.
OpenAI and its technology are all behind the excitement. A from Microsoft (NASDAQ:MSFT) to bring the technology to Microsoft Office and the Bing search engine, began the speculation.
C3.ai (NYSE:AI) and SoundHound.AI (NASDAQ:SOUN) both rose over 15% on Jan. 27, but were calm over the weekend.
The Next Big Thing
The launch of a new AI collaboration accelerated the search for “the next ChatGPT.”
ChatGPT is an easy-to-use AI tool launched in November. Enter a question and it spits out . Many students are using it for homework and tests,
. It is also being used to commit alleged acts of journalism.
BigBear says it delivers supplementing data, visualizing it, and providing prescriptive advice , the kinds of questions that come up in business meetings.
BigBear had revenue of just $145 million last year. Even its Jan. 30 rise puts the market capitalization at just $440 million, about three times revenue. But BigBear lost about $16 million, 13 cents per share, on revenue of $40.6 million during the third quarter. . The company also closed a private placement of almost , at $1.80, which includes warrants to sell another 14 million shares at $2.39 each starting in six months.
BigBear came public in December 2021 , and rose as high as $12.60 per share last April. It bottomed at 76 cents/share at the start of 2023. Traders at Stocktwits for the latest move.
BBAI Stock: What Happens Next?
, that doesn’t mean AI-powered tools like BigBear’s are about to take off. Right now, BBAI stock is just catching up with its peers in the speculative frenzy.
On the date of publication, Dana Blankenhorn held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
