The Fall !
In my Wed, 18 Dec 2024 post, I had assumed that $BigBear.ai Holdings(BBAI)$ will continue to rise further upon the Fed’s confirmed -0.25% interest cut.
As it turned out, it could not have been further from the presumptuous assumption.
US market crashed big time on Wednesday (afternoon onwards) due to the hawkish stance the Fed adopted, in lieu of its last interest cut for 2024 and the strategic reduction in the number of planned interest cuts going into 2025.
There were just a handful of stocks that defied logic and rose, most crashed with varying severity.
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BBAI was not one of the exceptions unfortunately.
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It fell by -7.94% (or -$0.27), ending Wednesday at $3.13 per share.
In my Wednesday post, I have also shared a scathing report by Iceberg Research (IR). (click here ! to read, Repost to share ok).
Just found out today, like many short sellers’ reports, IR has disclosed that they “may have a short position in the securities (and/or options, swaps, and other derivatives related to the stock) covered herein, and therefore may stand to realize gains in the event that the price of the covered securities declines”.
Do I need to further elaborate on a profit-driven post, published with the worst of intentions ?
The Good News !
On a brighter note, latest good news from BBAI is its collaboration with Proof Labs to develop an advanced cyber resiliency solution for US’s Air Force department. (see above)
The CROO solution will incorporate BBAI's SpaceCREST technology, a comprehensive digital twin capability that (a) serves as a real-time monitor and (b) alerting system of a satellite network's cyber infrastructure.
Although specific contract value was not disclosed, SBIR Phase II contracts typically range from $750,000 to $1.25 million.
The Implications.
What is important - the new contract further strengthens BBAI's position in the rapidly growing space cybersecurity market.
It also shows the company's ability to secure high-value government contracts, not to mention, the CROO project enhances BBAI's product portfolio.
Who knows it might lead to additional government contracts in the space security sector ?
This project aligns with increasing government spending on space security infrastructure and positions BBAI.ai to capture market share in this expanding sector.
Analysts have started to take some interest in BBAI shares as the company has flashed signs of coming business. (see below)
Technical Analysis (TA).
From a technical perspective, BBAI is trading in a healthy trend. (see above)
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The stock’s 50-day moving average is in a bullish pattern.
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It recently crossed above the longer 20-day trendline to form a bullish Golden Cross pattern.
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Shares may face selling pressure to their 20-day moving average in the $2.50 price zone.
For now, the bulls maintain control over BBAI with a price target of $5.00. Based on Wed, 18 Dec 2024 closing price, that’s a +59.74% upside. Worth a consider ?
You may be pleased to find out also that on Wednesday’s post trading, BBAI ‘future’ price was already up by +1.31% (+$0.041) to $3.17. (see above)
Do you still think BBAI is a good stock to invest, now and into 2025 ?
Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.
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Do you think US market will stage a recovery today, with reality settling in ?
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Do you think investors will ignore the IR report and pile into BBAI again ?
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