BigBear.ai (BBAI 16.01%) stock is roaring higher again in Thursday's trading. The company's share price was up 13.6% as of 2 p.m. ET amid a 0.5% jump for the S&P 500 (^GSPC 0.54%) and a 0.7% jump for the Nasdaq Composite (^IXIC 0.75%). The stock had been up as much as 17.4% earlier in the session.
While there doesn't appear to be any fresh business-specific news for BigBear.ai today, its valuation is getting a big boost in conjunction with bullish momentum for the broader market. Palantir stock hitting a new record high today may also be giving the smaller defense tech player's share price a lift as well.
BigBear.ai stock is now up 224.5% over the last three months.
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BigBear.ai stock sees another day of big gains despite no major news
The stock market is rising today as investors digest the latest rounds of economic data and react to recent corporate earnings reports. There's no major news for BigBear.ai today, but that isn't stopping its stock from posting double-digit gains.
Investors are looking to artificial intelligence (AI) and software companies with exposure to the defense industry as growth stocks that can continue to thrive in the face of geopolitical volatility. Palantir has been the poster child for the defense AI trade, and BigBear.ai has sometimes seen significant valuation moves in conjunction with news for Palantir or pricing shifts for its stock.
What's next for BigBear.ai?
BigBear.ai stock has seen a massive valuation run-up over the last couple of months on relatively little news. On the heels of its latest rally, BigBear.ai now has a market capitalization of roughly $2.4 billion and is valued at approximately 14 times this year's expected sales. While it's possible that the stock will continue to soar if the company announces major new contract wins, there's a risk that the company's recent gains are out of sync with the business's fundamentals and outlook.
