Did BigBear AI Investors Just Shoot Themselves in the Foot? Or Did They Set the Stock Up to Soar?
Yahoo Finance ·
Corporate leadership teams usually don't ask much of their shareholders beyond approving board slates and executive compensation packages. But the board of BigBear.ai ( BBAI +1.42% ) just made a big ask of its shareholders, who responded with a move that could come back to bite them. Here's what happened and why it could be good (or bad) for the stock. BigBear.ai is a defense company that has created AI-powered systems for various government entities, including facial scanners used at ports of entry and secure battlefield operations networks. Unlike fellow AI defense and security company Palantir Technologies ( PLTR +2.51% ) , BigBear has had limited success expanding beyond its niche into larger markets. About the only thing BigBear has grown is its outstanding share count. The company has increased the number of shares outstanding by more than tenfold over the past five years, from 46 million in 2021 to over 477 million today. Those shares have been used for acquisitions, executive and board compensation, and debt retirement.
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