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BigBear.ai (BBAI) Stock Soared 319% on a $900M Military Contract

Simon Mugo trader
Updated 12 Jan 2023

The BigBear.ai Holdings Inc (NYSE: BBAI) stock price soared 318.8% after winning a 10-year $900 million IDIQ contract with the U.S. Air Force. The company is a leader in AI-powered analytics and cyber engineering solutions.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The Indefinite Delivery/Indefinite Quantity (IDIQ) contract will allow Bigbear.ai to compete for Air Force task orders, including delivering capabilities, systems and synthetic environments, as a prime contractor.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

According to the Air Force Life Cycle Management Center (AFLCMC), Architectures and Integration Directorate, the tasks done by Bigbear.ai will be completed by 2032, implying a 10-year period during which the contract will remain active. 

The contract award will also allow Bigbear.ai to compete for task orders that support the development and research of new technologies, including creating rapid prototypes, capability testing and implementing solutions. 

Bigbear did not provide further details about the contract, given the sensitive nature of military contracts. Still, investors were happy to see that the company now has a guaranteed revenue stream of $900 million split over ten years.

Therefore, we can expect the contract to earn Bigbear.ai $90 million annually if it remains in place, which is highly likely, given that the military does not award contracts that last for such long periods unless they are for services they will need. 

Tony Barrett, President and General Manager of Federal Markets at BigBear.ai., said: “BigBear.ai understands the importance of bringing cutting-edge and resilient solutions to each mission, and we are honored to be selected for this opportunity. This contract will allow us to continue our long-term partnership with the U.S. Air Force and support as a prime contractor in future opportunities.”

After today’s impressive rally, many hope that BBAI stock will enter a new uptrend. However, such parabolic rallies are usually followed by significant pullbacks before a new trend emerges. 

*This is not investment advice. 

Bigbear.ai (BBAI) stock price.

The Bigbear.ai (BBAI) stock price soared 318.82% to trade at $3.56, from Wednesday’s closing price of $0.85.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading