2024-03-25 14:10:00 ET
BigBear.ai (NYSE: BBAI) went public by merging with a special purpose acquisition (SPAC) company on Dec. 8, 2021. The data mining company's shares started trading at $9.84 and climbed to an all-time high of $16.12 on April 6, 2022.
But today, the stock trades at about $2 per share. A $10,000 investment in BigBear.ai on its first trading day would have shrunk to just over $2,100. Let's see why the company initially impressed the bulls, how it let them down, and where the stock might be headed.
Before BigBear.ai went public, it provided some ambitious growth targets in its pre-merger presentation. The company claimed it could deliver a compound annual growth rate (CAGR) of 40%, taking revenue from $140 million in 2020 to $388 million in 2023 while expanding its gross margin from 30% to 50% and keeping its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) margins in the high teens. It then aimed to further double its revenue to $764 million by 2025.
For further details see:
If You Invested $10,000 in BigBear.ai in 2021, This Is How Much You'd Have Today