Market Movers: BigBear.ai Stock Surges Amid Palantir Partnership News
Friday’s trading session saw BigBear.ai (NYSE: BBAI) stock experience a significant surge, with its share price increasing by 20% as of 12:15 p.m. ET, and reaching as high as 26.9% earlier in the day. While there doesn’t appear to be any direct, business-specific news driving this growth, the company’s stock is likely benefiting from the recent partnership announcement between Palantir Technologies (NASDAQ: PLTR) and Booz Allen Hamilton.
Palantir-Booz Allen Hamilton Partnership Boosts Defense Technologies
The joint press release from Palantir and Booz Allen Hamilton revealed their collaboration to accelerate U.S. defense mission innovation. This news has sent Palantir stock soaring, with a 6% increase as of this writing. BigBear.ai’s partnership with Palantir, which aims to advance machine learning technologies and integrate their respective capabilities, may be contributing to the surge in BigBear.ai’s stock.
The Connection Between BigBear.ai and Palantir
The two companies’ partnership has led to a narrative connection between their stocks, which has helped push Palantir’s valuation higher. While it’s possible that Palantir’s contract wins could have significant carryover benefits for BigBear.ai, this won’t always be the case. BigBear.ai’s stock has received a boost this week following a report by The Economic Times, which suggested that the company’s stock could experience performance gains similar to Palantir’s remarkable 343% increase across 2024’s trading.
A Word of Caution for BigBear.ai Investors
However, investors should approach BigBear.ai with caution. The company’s share price appears to be driven by meme stock momentum and expectations that it could be “the next Palantir.” While BigBear.ai may deliver significant business wins, recent gains seem disconnected from its fundamental business performance and outlook conditions. As such, it’s essential to understand that investing in BigBear.ai comes with high risk.
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