Could the Stargate project help send BigBear.ai shares that rose this year?

The cost of artificial intelligence (AI) has heated recently and it may not necessarily be slower. The Stargate project, a new joint venture announced in January, will involve more companies – Openai, Oracleand Softbank – Investment of hundreds of billions of dollars to help build data centers and infrastructure needed for AI.

But what could it mean for a smaller AI company, such as Bigbear.ai (BBAI 42.53%?? Could it take advantage of this development and will this be a potential catalyst that will help the stock this year?

Will Stargate help Bigbears business?

Although BigBear.ai is not one of the most important companies involved in Stargate, nor does it sell AI-related infrastructure, it can still benefit from the project. This is because it can be an important first step for companies that want to offer AI-driven products and services. And Bigbear can help them along that path.

Bigbears Decision Information Solutions can help companies when making complex decisions, including those related to AI. Its solutions help companies in different industries, whether or not they offer AI products and services. While there may not be a Direct link And the way the company will take advantage of the new Stargate venture can indirectly take advantage of President Trump announcing the deal, which puts more of a focus on AI and highlights the importance of investment in this tech area.

Investors were definitely bullish in the news as the day of the Stargate message, Bigbear’s stock hit an intraday high of $ 4.82 – an increase of more than 9% from the previous day’s end. If nothing else, with Bigbear, there is a growing AI stock, it can still see an increase in its share price from greater excitement in AI as a whole.

Bigbear grows but its loss is the great concern

What promises about Bigbear’s business is that it is growing at a reasonably quick rate and still unlocking offers that can lead to more growth in the future. In the last quarter ended on September 30, the company’s revenue grew by more than 22% to $ 41.5 million. And it also recently announced a five -year contract with the US Army worth $ 165 million.

There is a lot of potential for the company, but investors should not overlook Bigbear’s lack of profitability. Last quarter, it imposed a net loss of $ 12.2 million, and over the past three quarters its loss of a total of $ 149.1 million. The company’s gross margins are quite easy at about 25% of revenue, which means its sales costs and costs must be lean for the company to make a profit. But with selling, general and administrator expenses alone that come higher than its gross profit in recent periods, it will not be an easy path for Bigbear to get to the Breakeven at any time soon.

Is BigBear.ai -Stores a GOOD BUY right now?

On Monday, the news that the Chinese company Deepseek came out with a cheap and competitive AI model, doubts in investors’ minds, regardless of whether all the heavy expenses for AI are really needed. It sent tech shares spiral -shaped, including Bigbear, which fell by almost 11%.

Bigbear would certainly take advantage of an increase in AI-related expenses, but the concerns raised as a result of Deepseek could have companies thinking twice. It is a viable concern for investors, but there are other problems when it comes to Bigbear. This includes whether the company has the competitive Vollgrav needed to dominate in what becomes a warm contentious AI Business Intelligence Market, with many other companies offering similar services.

And without strong economies, Bigbear can be poorly equipped to spend strongly on marketing, which may be necessary to win customers. It may result in its loss becoming deeper in the future.

Overall, with a lot of questioning about the company’s future, Bigbear is not a stock I would take a chance for today. Any benefits that come from Stargate will be indirect at best and may take the time to realize; I can’t see the business or stock get a huge boost from it. Unless you are willing to take on a fairly high degree of risk, you may feel better about avoiding BigBear and the volatility that comes from keeping its shares in your portfolio.