Week to date, shares of BigBear.ai (NYSE: BBAI) were down 24% as of 11:07 a.m. on Friday, according to data provided by S&P Global Market Intelligence . Following last week's jump on the news BigBear.ai had won an indefinite quantity (IDIQ) contract with the U.S. Air Force, the company found itself in the crosshairs of a short-seller that sent the stock plunging.
BigBear.ai is a leader in analytics and cyber engineering using artificial intelligence. The recently announced 10-year contract worth $900 million to deliver capabilities, systems, and synthetic environments to the U.S. Air Force appears to be a huge win on the surface, but its status as an IDIQ contract implies that BigBear may not receive as much from this deal as the headlines suggest.
In a tweet, Iceberg Research revealed its short position on the stock via put options. Iceberg clearly believes the potential value of the deal is not enough to justify a 260% increase in the stock in one trading session.
For further details see:
Why BigBear.ai Stock Crashed This Week