BigBear.ai Struggles to Compete with Palantir's Dominance in Data Analytics
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BigBear.ai provides modular data analytics services, while Palantir offers end-to-end platforms. BigBear.ai is also smaller and less profitable than Palantir.
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BigBear.ai severely missed its own growth and profitability projections after going public via a SPAC merger. Its revenue growth stalled as macro issues and a major customer bankruptcy hit its business.
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In response, BigBear.ai cut costs, improved margins, and made an acquisition to reignite growth. But the acquisition is small and growth remains slow overall.
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Palantir's business has held up better, with double-digit revenue growth and consistent GAAP profits. Palantir's increasing dominance makes it hard for BigBear.ai to compete.
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While BigBear.ai's stock is cheap, its growth is likely to significantly lag Palantir's. It seems unlikely to replicate Palantir's success.