BigBear.ai Stock Crashes: What Triggered the 2025 Bloodbath?
Another AI darling bites the dust—BigBear.ai's stock got slaughtered last week as Wall Street's algo-traders executed their favorite ritual: panic-selling first, asking questions never.
The AI hype bubble pops (again)
Investors dumped BBAI shares like expired GPU inventory after its earnings revealed the cold truth: enterprise AI adoption moves slower than a Bitcoin block during congestion. The stock nosedived 30% in three days—turning paper hands into kindling.
Short sellers smell blood
Hedge funds piled on the carnage, short interest spiking to 25% of float. Turns out selling 'military-grade AI' to bureaucrats doesn't scale like consumer apps—who knew?
The crypto parallel
Like altcoins in a bear market, BBAI got rekt by its own hype cycle. The company's 'transformational blockchain-AI convergence' PowerPoint slides couldn't compensate for burning $40M quarterly cash. But hey—at least they're not a meme stock. Yet.
As always, the real AI profits went to Nvidia and the short sellers. Some things never change in this casino.
Image source: Getty Images.
BigBear.ai stock slipped in response to China news
BigBear.ai has seen big valuation gains in conjunction with the defense-AI investing trend, but the stock saw a significant pullback last week on indications that relations between the U.S. and China may be improving. In order to help facilitate trade negotiations with China, the TRUMP administration paused export restrictions that prevented advanced AI processors and chip manufacturing equipment from being sold into the country. While the lifting of the export licensing requirements likely has minimal direct impact on BigBear.ai's business, some investors interpreted the development as a negative catalyst for defense software plays.
What's next for BigBear.ai?
BigBear.ai will publish its second-quarter results and host an investor conference call after the market closes on Aug. 11. While the company didn't provide guidance for Q2 with its last update, it did issue guidance for full-year revenue to be between $160 million and $180 million -- suggesting annual growth of approximately 7.5%. On the heels of its valuation gains over the last few months, investors may be looking for significant performance beats or new contract or partnership announcements with the company's upcoming quarterly report.
