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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.

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