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Barchart
Barchart
Edited by Elizabeth Volk

Why Did AI Stocks Soundhound AI, BigBear.ai, and C3.ai Break Out Today?

SoundHound AI (SOUN) stock spiked 18% by the close today, pacing a strong start to the week for other artificial intelligence (AI) growth stocks like BigBear.ai (BBAI) and C3.ai (AI). Though SOUN notched the biggest gain on the day, traders largely seemed to be reacting to news that BigBear.ai rolled out its veriScan biometric verification platform at Denver International Airport. BBAI jumped 8.8% on the news, while AI stock added 4.2% today.

With a market capitalization of approximately $391 million, BBAI is not yet profitable, so the DIA news has sparked considerable excitement. The stock has only traded as high as $4.79 this year, and BBAI has underperformed with a loss of 19.2% for 2024. 

Analyst ratings for BBAI are bullish, with a consensus “strong buy” opinion and a price target of $3.00, about 73.4% overhead. 

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Priced at 2.31 times forward sales, BBAI is reasonably valued for an AI growth stock. However, despite the relatively low valuation and the strong endorsement from Wall Street, investors should weigh the inherent risks of investing in early-stage AI companies against the potential growth opportunities before buying shares of BBAI.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor had a position in: SOUN . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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