BigBear's sales trajectory is concerning, and its losses are growing. The company has a non-negligible amount of debt already and negative cash flows. Despite this, the stock still carries a hefty premium, granted not nearly as high as Palantir's, but still significant for its current sales and earnings trajectories. I would avoid the stock.

Historically, following earnings announcements, the stock has posted negative returns in more than 85% of instances on a single-day basis, a trend we analyzed in a previous note. The pivotal question now is whether BBAI stock represents a wise investment after this downturn.

BigBear.ai (NYSE:BBAI) stock took a 16% pounding since Tuesday’s session after its Q2 results failed to please investors. That setback halted what