Palantir Technologies Inc (NASDAQ:PLTR) has become synonymous with defense-grade artificial intelligence, anchored by its government contracts, profitable growth and recent S&P 500 inclusion. But another name is now sparking serious interest: BigBear.ai Holdings Inc (NYSE:BBAI).
BigBear.ai's Big Moment
BigBear.ai surged 2.2% on Thursday to $7.73, with trading volume skyrocketing 306% — over 201 million shares. The stock is up over 14% over the past five trading days. Its AI platform VANE just featured in the U.S. Army's Project Convergence Capstone 5, and a fresh $165 million defense contract adds to its $384.9 million backlog.
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Social media buzz, including comparisons to Palantir, suggests momentum is building among retail traders, especially given BigBear.ai's lower valuation.
David Vs. Goliath … With A Catch
BigBear.ai's fundamentals are still in build mode. It posted a $8 million net loss last quarter and 52% of its revenue came from just four clients. But its P/S ratio of 12x is a fraction of Palantir's eye-popping 107x (per Benzinga Pro data) — an appealing metric for value-oriented investors.
Palantir, on the other hand, reported $105 million in net income in the first quarter, up 83% year-over-year. Its platforms, Gotham and Foundry, are widely used across defense and commercial sectors.
Yet valuation risk looms: a P/E of 584x and tariff uncertainty could slow growth.
Technical Setup: BigBear.ai Riding Momentum, While Palantir Sails Through
Chart created using Benzinga Pro
BigBear.ai is riding a momentum wave rising above all key moving averages, as traders appear bullish on the stock. The stock is pressing against resistance at $8.50 with support near $7.50. RSI (relative strength index) is at 77.89, technically overbought but showing strength and supported by a positive MACD (moving average convergence/divergence) reading of 0.97. Word of caution around volatility, as beta at 3.05, is high.
Chart created using Benzinga Pro
Palantir trades around $138, above key moving averages but with volatility and pullback below short-term moving averages seen recently. Long-term remains strongly bullish with the 200-day average trading below the current price level. A neutral RSI at 55.35 and positive MACD at 2.60 lend further support.
The Verdict
For long-term investors, Palantir remains the established leader. But for those willing to take on more risk, BigBear.ai is shaping up to be a compelling upstart in the AI defense space.
With the July 9 tariff decision looming, both stocks could see catalysts — one from strength, the other from speculation.
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