BigBear.ai (NYSE: BBAI), a developer of data mining and analytics tools, went public by merging with a special purpose acquisition company (SPAC) on Dec. 8, 2021. Its stock opened at $9.84 and reached its all-time high of $12.69 on April 13, 2022. But today, BigBear.ai trades at less than $4 a share.

Its investors retreated as its growth cooled off, it broadly missed its pre-merger targets, and it racked up steep losses. Rising interest rates also compressed its valuations. So could this beaten-down artificial intelligence (AI) stock bounce back over the next 12 months? Let's review its business model, long-term challenges, and valuations to find out.

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Source Fool.com