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U.S. stocks signaled another rally on Sunday night after the Trump administration negotiated a framework for a trade deal with China that should avoid mutual assured destruction.

Snack maker Mondelez is using a new generative AI tool to cut costs for the production of marketing content by 30 percent to 50 percent, a senior executive told Reuters.

The packaged-food manufacturer began developing the tool last year with ad company Publicis Groupe and IT firm Accenture.

Mondelez expects that the tool will be capable of making short TV ads that would be ready to air as soon as next year’s holiday season, and potentially for the 2027 Super Bowl, said Jon Halvorson, Mondelez’s global senior vice president of consumer experience.

The Cadbury chocolate producer has invested more than US$40 million ($61.4 million) in the tool, Halvorson said, adding that savings would grow if the tool is able to make more elaborate videos.

Faced with tariffs and shrinking shopper budgets, Mondelez, like other consumer goods companies, is looking to adopt AI to slash fees paid to advertising agencies, and speed up how long it takes to develop and sell new products. 

Rivals such as macaroni-and-cheese maker Kraft Heinz and Coca-Cola have also been trying out AI for ads.

Coke in 2024 ran AI-created holiday ads, though the computer-created people in them were ridiculed by some consumers for lacking real emotion.

Mondelez is not yet putting human likenesses in its AI-created content.

It is using content generated by the new tool on social media for its Chips Ahoy cookies in the US and Milka chocolate in Germany.

An eight-second Milka video shows waves of chocolate rippling over a wafer, along with different backgrounds depending on which consumer Mondelez is targeting.

The cost to do animations “is in the hundreds of thousands,” Halvorson said. “This type of setup is orders of magnitude smaller.”

In the US, Oreo will use the tool for product pages on Amazon and Walmart in November.

Mondelez plans to use the tool in the coming months for Lacta chocolate and Oreo in Brazil, and Cadbury in the UK, Halvorson said. 

Tina Vaswani, vice president of digital enablement and data for the company, said humans will always check what the tool produces to avoid any mishaps.

Mondelez has rules prohibiting highlighting unhealthy eating habits, vaping, overconsumption, emotionally manipulative language and the use of offensive stereotypes, according to a document shared by the Chicago-based company.

BigBear.ai Holdings (BBAI) shares have seen some movement lately, drawing attention from investors as the company’s performance metrics continue to evolve. The stock’s year-to-date gains stand out, particularly in light of recent market trends.

See our latest analysis for BigBear.ai Holdings.

Momentum has been building around BigBear.ai Holdings, with its 1-day share price return of 3.98% hinting at renewed interest following a stretch of mixed performance. Despite some short-term choppiness, the stock boasts a robust year-to-date share price return of 71.53%. The longer-term picture is even more striking, as the 1-year total shareholder return clocks in at 343.40%, showing significant value creation for investors with a longer horizon.

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With such spectacular returns on the board, the key question becomes whether BigBear.ai is trading at a bargain, or if its rapid growth story is already fully reflected in the current share price. Could there still be a buying opportunity, or is the market already pricing in all the future upside?

BigBear.ai Holdings closed at $7.05, significantly above the widely followed narrative’s fair value estimate of $5.83. This calls attention to the drivers behind that price target, given the company’s recent momentum.

BigBear.ai plans to expand internationally by converting successful pilots into enduring programs and building regional partnerships with leading companies. This approach could potentially increase revenue and expand global market presence. The company is focused on business alliances and strategic acquisitions, which may drive faster innovation and open new revenue streams by accessing additional markets and technologies.

Read the complete narrative.

Want to know what bold predictions power this high price tag? Uncover insider assumptions about future growth, margins, and market reach. The full narrative reveals the aggressive financial forecasts and ambitious targets that set this valuation apart. Don’t miss out on what could be fueling BigBear.ai’s dramatic potential.

Result: Fair Value of $5.83 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, short-term revenue swings and ongoing government contract delays could challenge BigBear.ai’s ambitious outlook and may test investor confidence in upcoming quarters.

Find out about the key risks to this BigBear.ai Holdings narrative.

If you see the story differently or want to dig into the details on your own, you can craft your perspective in just a few minutes. Do it your way.

A great starting point for your BigBear.ai Holdings research is our analysis highlighting 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BBAI.

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