BigBear.ai (BBAI) stock has lost about 15% after the artificial intelligence (AI)-powered data analytics company reported dismal second-quarter results. Despite the recent pullback, top analysts continue to rate BBAI as a Buy, citing the company’s strong long-term growth outlook. They are encouraged by improvements in its core products and overall financial position. Additionally, the company’s backlog, representing contracted work yet to be completed, rose 42.9% year-over-year to $380 million, indicating robust demand and solid revenue visibility ahead. So, for long-term investors, this dip may present a buying opportunity, especially through exchange-traded funds (ETFs) that offer diversified exposure to BBAI without the risk of holding the stock directly.
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Thus, investors seeking exposure to BBAI stock may consider the Themes Generative Artificial Intelligence ETF (WISE) and SPDR S&P Software & Services ETF (XSW).
Themes Generative Artificial Intelligence ETF
The WISE ETF tracks the Solactive Generative Artificial Intelligence Index (SOLGAIN), which focuses on companies involved in AI-related industries such as data analytics, natural language processing, and AI-driven services.
Overall, the ETF has $32.62 million in AUM. Additionally, it has an expense ratio of 0.35%. The WISE ETF has returned 45% in the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 42 stocks held, 27 have Buys and 15 have a Hold rating. At $44.38, the average WISE ETF price target implies a 10.48% upside potential.
SPDR S&P Software & Services ETF
The XSW ETF seeks to track the performance of the S&P Software & Services Select Industry Index, which includes U.S.-based software and IT services companies. This ETF offers diversified exposure to firms involved in application software, systems software, data processing, and IT consulting across various market capitalizations.
Overall, the ETF has $471.8 million in assets under management (AUM) and an expense ratio of 0.35%. Over the past year, the XSW ETF has gained 20%.
On TipRanks, XSW has a Moderate Buy consensus rating based on 118 Buys, 21 Holds, and 1 Sell assigned in the last three months. At $232.83, the average XSW ETF price target implies 26.05% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to BBAI, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider WISE and XSW, as these ETFs offer exposure to BBAI stock.