Why BigBear.ai Stock Is Skyrocketing Today

BigBear.ai (NYSE: BBAI) stock is rocketing higher in Thursday's trading. The company's share price was up 12.8% as of 3:15 p.m. ET and had been up as much as 22.6% earlier in the day's session.

BigBear.ai is surging today thanks to meme stock momentum. Meme stocks have enjoyed bullish energy lately, and BigBear's share price has seen explosive gains recently on the heels of a report which raised the possibility that the company could be the next Palantir.

BigBear.ai rallies on continued meme stock momentum

On Dec. 2, The Economic Times published an article discussing Bigbear.ai and whether the stock had the potential to deliver multibagger returns comparable to recent gains posted by Palantir -- a leader in artificial intelligence (AI) technologies. While there wasn't any new information contained in the report, the write-up was enough to help spur big gains for BigBear.ai's share price.

In conjunction with expectations that next year could bring new rounds of cuts for interest rates and corporate taxes and a more lax regulatory climate, meme stocks have been posting explosive gains lately. BigBear.ai stock is now up roughly 82% over the last month.

What's next for BigBear.ai stock?

BigBear.ai has been an explosive winner lately, and it's possible that the company's market-crushing gains will continue in the near term. Investors are on the hunt for the next big opportunity in the AI software space, and the announcement of new contract wins and solid financial results could have the effect of pushing the software specialist's valuation above current levels.

On the other hand, investors should probably move forward with the understanding that recent gains for the stock have not been driven by any breakthroughs in fundamental business performance. With the company's share price climbing thanks to meme stock momentum and excitement surrounding the broader AI software category, BigBear.ai looks riskier on the heels of its recent rally.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.