10 Most Popular AI Stocks to Avoid Now

6. BigBear.ai Holdings, Inc. (NYSE:BBAI)

Year to Date Loss as of May 13: -17.87%

S&P 500 Year to Date Performance as of May 13: 4.92%

BigBear.ai Holdings, Inc. (NYSE:BBAI) is a technology company that provides artificial intelligence-powered decision intelligence solutions. The company offers national security, supply chain management, digital identity, and biometrics solutions. The stock is again on the receiving end, going by the 17.87% year-to-date slide. The slump comes amid growing concerns about its financial results.

When BigBear.ai Holdings, Inc. (NYSE:BBAI) went public in 2021, it projected revenues to grow from $182 million in 2021 to $550 million in 2024. Its target is yet to come to fruition as revenues totaled $158 million in 2024, raising serious concerns about the AI Company’s growth prospects. Likewise, the company is yet to become profitable. Its net loss more than doubled in 2024 to $257 million, affirming why it is one of the most popular AI stocks to avoid.

Macroeconomic challenges, fierce competition from bigger AI firms, and the 2023 bankruptcy of its largest client, Virgin Orbit, are some of the difficulties BigBear.ai Holdings, Inc. (NYSE:BBAI) has had to contend with. Additionally, since going public, the corporation has had three CEOs. To increase sales, it also purchased Pangiam, an AI vision startup, a year ago. To grow the young company may need to make other acquisitions. However, that might not be easy to accomplish without significantly diluting its current investors or taking on much more debt.