Investors’ optimism over artificial intelligence (AI) computing has led to a significant appreciation in BigBear.ai Holdings (NYSE:BBAI) stock. Shares of BBAI have gained about 76% year-to-date. Further, this penny stock (learn more about penny stocks here) is up about 116% in three months. However, the company’s Q4 financials missed Street’s Q4 expectations, putting the brakes on the stellar blistering rally.
BBAI stock fell over 22% in Thursday’s after-hours trading after the company delivered lower-than-expected fourth-quarter results. BBAI provides AI-led decision-intelligence solutions with applications in cybersecurity, autonomous systems, supply chains, and logistics.
BBAI’s Top and Bottom Lines Miss Estimates
The company’s revenue was $40.6 million in Q4, up only 0.5% year over year. Further, its top line came below analysts’ estimate of $42.8 million. Nonetheless, it delivered positive adjusted EBITDA for the second consecutive quarter.
The company managed to cut losses in Q4. It delivered a net loss per share of $0.14, compared to per loss of $0.23 a share in the prior-year quarter. However, this loss was higher than the analysts’ expectation of a loss per share of $0.05.
What Is the Price Target for BBAI Stock?
BBAI stock has two Buy recommendations from Wall Street analysts. Given the notable rally in its shares, these analysts’ average price target is $3.50, reflecting a downside potential of 6.91% from current levels.
