Would You Still Hold BigBear.ai Stock If It Fell Another 30%?
BigBear.ai (BBAI) stock is down 16.3% in 21 trading days. The recent slide reflects renewed concerns around its accounting practices and declining government contracts, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where BigBear.ai stands today.
- Size: BigBear.ai is a $1.9 Bil company with $153 Mil in revenue currently trading at $5.79.
- Fundamentals: Last 12 month revenue growth of 3.5% and operating margin of -36.7%.
- Liquidity: Has Debt to Equity ratio of 0.05 and Cash to Assets ratio of 0.65
- Valuation: BigBear.ai stock is currently trading at P/E multiple of -4.8 and P/EBIT multiple of -5.2
These metrics point to a Weak operational performance, alongside Very High valuation – making the stock Very Unattractive. For details, see Buy or Sell BBAI Stock
That brings us to the key consideration for investors worried about this fall: how resilient is BBAI stock if markets turn south? This is where our downturn resilience framework comes in. Suppose BBAI stock falls another 20-30% to $4 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- BBAI stock fell 95.0% from a high of $12.69 on 13 April 2022 to $0.63 on 29 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $9.78 on 13 February 2025 , and currently trades at $5.79
| BBAI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -95.0% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
Feeling jittery about BBAI stock? Consider portfolio approach.
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