Palantir fell about 15% in two weeks despite beating earnings and securing a $10 billion, 10-year Army contract, amid concerns over its very high forward P/E. The stock rallied roughly 391% over the past year, leaving valuation-sensitive investors uneasy about sustaining premium multiples. BigBear.ai targets the same government and enterprise AI-driven decision intelligence market with offerings like ConductorOS and reported contract wins and DoD exercise integrations. BigBear.ai presents a lower valuation profile while pursuing defense, border security, and critical infrastructure clients, prompting investor comparisons between an expensive Palantir and a cheaper BigBear.ai alternative.
Palantir Technologies (PLTR) dropped 15% in two weeks despite an earnings beat and a $10 billion Army contract, driven by its high forward P/E of 100. BigBear.ai Holdings (BBAI) targets a similar AI and defense market with contract wins but at a lower valuation. Investors are wondering if BBAI is a better play given Palantir's expensive stock price. Nvidia made early investors rich, but there is a new class of 'Next Nvidia Stocks' that could be even better.
BigBear.ai operates in the same AI-driven decision intelligence space as Palantir, targeting government and enterprise clients with solutions for defense, border security, and critical infrastructure. Like Palantir's Gotham and Foundry platforms, BigBear.ai's offerings, such as its ConductorOS platform, focus on real-time data analytics and AI orchestration. The company has shown progress in integrating its technology into high-profile settings, including Department of Defense exercises and partnerships with entities like Heath
Despite reporting a strong second-quarter earnings beat and securing a massive $10 billion, 10-year contract with the U.S. Army, the stock's lofty valuation appears to be the culprit behind the sell-off. Trading at a forward P/E of around 189, Palantir's meteoric rise - up 391% over the past year alone - has left it vulnerable to corrections as investors question its ability to sustain such premiums.
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