BigBear.ai Stock Soars 20% on Q3 Beat and Ask Sage Acquisition, but is it Worth Holding?

BigBear.ai (BBAI) stock surged 20% after announcing a $250 million acquisition of Ask Sage and posting Q3 financials beating market expectations. The deal adds $25 million in annual recurring revenue and positions BBAI to compete more effectively in the defense AI market. However, caution is warranted due to a compressed gross margin, negative adjusted EBITDA, and speculative valuation. Wall Street estimates suggest the rally has gone too far.