Why BigBear.ai Holdings, Inc. (BBAI) Crashed on Friday

We recently compiled a list of the These 10 Firms Were Heavily Hit on Friday. In this article, we are going to take a look at where BigBear.ai Holdings, Inc. (NYSE:BBAI) stands against the other stocks.

Wall Street’s main indices finished mixed on Friday, with the tech-heavy Nasdaq emerging as the sole gainer, rallying 0.41 percent. The Dow Jones, for its part, decreased by 0.37 percent, while the S&P 500 was little changed, dipping 0.01 percent.

Ten companies mirrored a mostly pessimistic broader market.

To come up with this list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A closeup of a computer server rack surrounded by a CAT5 network of cables.

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

BigBear.ai Holdings, Inc. (NYSE:BBAI) snapped a two-day winning streak on Friday, losing 7.77 percent to close at $9.02 apiece as investors resorted to profit-taking following a surge earlier in the week.

Earlier last week, the company, along with its counterparts, earned a boost from US Vice President JD Vance’s speech at an AI summit in Paris, saying that the government “will…work with our allies and partners to strengthen and extend these protections and close pathways to adversaries attaining AI capabilities that threaten all of our people.”

“This administration will ensure that American AI technology continues to be the gold standard worldwide…The United States of America is the leader in AI, and our administration plans to keep it that way,” he said.

Meanwhile, BigBear.ai Holdings, Inc. (NYSE:BBAI) also bagged a deal with the Department of Defense to support the agency’s initiative to enhance news media assessment and analysis of countries that are deemed as US potential enemies through the use of BigBear.ai Holdings, Inc. (NYSE:BBAI)’s Virtual Anticipation Network prototype.

Overall BBAI ranks 8th on our list of the stocks that crashed on Friday. While we acknowledge the potential of BBAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for other AI stocks that are as promising as BBAI but that trade at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.