Nebius Group (NBIS) AI Stock Analysis

• Market Cap: $27.37B
• Dividend Yield: N/A
• Average Volume (3M): 22.36M
• Price to Earnings (P/E): 113.5
• Beta (1Y): 1.67
• Revenue Growth: -95.06%
• EPS Growth: 1.92%
• Country: US
• Employees: 1,371
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.38
• Shares Outstanding: 215,438,840
• 10 Day Avg. Volume: 17,488,009
• 30 Day Avg. Volume: 22,358,175
• PEG Ratio: 2.98
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 7302.19
• P/FCF Ratio: -13.85
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 108.02
• Enterprise Value/Gross Profit: -492.34
• Enterprise Value/Ebitda: -563.10
• 1Y Price Target: $149.50
• Price Target Upside: 51.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 50 Neutral
• Price Target: $104.00 ▲(5.46% Upside)

The overall stock score reflects significant financial challenges and overvaluation concerns, despite positive technical indicators. The strong earnings call guidance and strategic partnerships are promising but are offset by financial instability and high valuation.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful business strategies, positioning Nebius for continued expansion in the AI cloud sector.

Strategic Partnerships

Strategic partnerships with leading tech companies enhance Nebius's AI platform offerings, strengthening its competitive position and fostering innovation.

Capital Expansion

The capital expansion through convertible notes supports Nebius's growth initiatives, enabling infrastructure expansion and increased market presence.

Negative Factors

Declining Profitability

Negative net income reflects underlying financial challenges, potentially limiting Nebius's ability to reinvest in growth and maintain competitive advantage.

Cash Flow Issues

Weak cash flow management can hinder Nebius's operational flexibility and ability to fund strategic initiatives, impacting long-term sustainability.

Dependency on Future Capacity

Reliance on future capacity for revenue growth introduces risk, as delays or issues in capacity expansion could impact revenue projections and business stability.

Nebius Group Business Overview & Revenue Model

Company Description

Nebius Group N.V., operates as a technology company that engages in building full-stack infrastructure to service the global AI industry. Its businesses include Nebius, an AI-centric cloud platform built for intensive AI workloads. Nebius builds full-stack infrastructure for AI, including large-scale GPU clusters, cloud platforms, and tools and services for developers. The company's businesses also comprise Toloka AI, a data partner for various stages of generative AI development; TripleTen, an edtech player re-skilling people for careers in tech; and Avride, which develops autonomous driving technology for self-driving cars and delivery robots. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is headquartered in Amsterdam, the Netherlands with R&D hubs across Europe, North America and Israel.

How the Company Makes Money

Nebius Group generates revenue through several key streams. Primarily, the company earns money by offering subscription-based cloud services, which include infrastructure as a service (IaaS) and platform as a service (PaaS) solutions. This model allows clients to pay for resources based on usage, providing a steady income stream. Additionally, Nebius Group provides consulting and implementation services, assisting businesses in integrating their cloud solutions and optimizing their data analytics capabilities. The company also partners with other technology firms to enhance its service offerings, which can lead to revenue-sharing agreements and collaborative projects. Furthermore, Nebius Group may engage in product licensing, where it licenses its proprietary software to other businesses, creating another significant revenue channel.

Nebius Group Financial Statement Overview

Summary

Nebius Group faces significant financial challenges, with declining revenues and profitability, incomplete balance sheet data, and weak cash flow management. While there were periods of strong revenue growth and profitability, the recent downturn raises concerns about the company's financial health and sustainability.

Income Statement

The company has experienced significant volatility in its financial performance. The revenue has drastically declined from 2023 to 2024, leading to a negative EBIT and EBITDA. The net income has also turned negative, indicating financial distress. However, the gross profit margin remains relatively strong, suggesting some operational efficiency.

Balance Sheet

The balance sheet data for 2024 is incomplete, making it challenging to assess current financial stability. Historically, the company had a reasonable debt-to-equity ratio and a healthy equity base. However, the increase in net debt in previous years suggests rising leverage, which could pose risks if profitability continues to decline.

Cash Flow

The cash flow statement highlights concerns, especially with zero operating cash flow and free cash flow in 2024. Previously, the company had positive operating cash flows, but current data suggests cash management issues. The absence of capital expenditure figures further complicates the analysis.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.96M	20.86M	7.36B	4.82B	3.01B
Gross Profit	-33.05M	-40.23M	3.63B	2.14B	1.58B
EBITDA	-306.69M	-291.19M	1.82B	344.43M	943.49M
Net Income	142.55M	240.88M	556.55M	-198.49M	340.78M
Balance Sheet
Total Assets	3.53B	8.76B	8.28B	6.91B	6.93B
Cash, Cash Equivalents and Short-Term Investments	2.44B	121.20M	1.13B	1.44B	3.20B
Total Debt	49.47M	584.76M	1.39B	1.89B	1.46B
Total Liabilities	293.55M	5.46B	3.74B	3.25B	2.25B
Stockholders Equity	3.24B	3.29B	4.25B	3.46B	4.37B
Cash Flow
Free Cash Flow	-559.53M	746.40M	682.40M	-473.75M	108.23M
Operating Cash Flow	244.48M	829.80M	697.00M	124.62M	438.20M
Investing Cash Flow	310.18M	-1.21B	-403.10M	294.94M	-1.61B
Financing Cash Flow	821.73M	375.60M	-100.30M	-1.14B	1.88B

Nebius Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBIS, the sentiment is Positive. The current price of 98.62 is below the 20-day moving average (MA) of 118.61, above the 50-day MA of 95.33, and above the 200-day MA of 52.12, indicating a neutral trend. The MACD of 3.81 indicates Positive momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 6.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBIS.

Nebius Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	78 Outperform	$22.95B	11.79	48.08%	―	17.00%	901.05%
TWLO	68 Neutral	$17.05B	898.28	0.24%	―	11.56%	―
Z	67 Neutral	$18.55B	―	-1.34%	―	15.31%	56.19%
MTCH	62 Neutral	$7.95B	16.28	―	1.15%	-0.60%	-11.05%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SNAP	58 Neutral	$13.06B	―	-26.42%	―	13.18%	54.39%
NBIS	50 Neutral	$27.37B	113.46	4.95%	―	-95.06%	1.92%

Nebius Group Corporate Events

Avride Secures $375 Million Investment from Uber and Nebius

On October 22, 2025, Avride, a subsidiary of Nebius Group and a leader in autonomous driving technologies, announced securing up to $375 million in strategic investments and commitments from Uber and Nebius. This funding is set to accelerate Avride’s growth in autonomous vehicle technology, expand its fleet, and support AI-driven product development. The investment builds on Avride’s existing partnership with Uber, with plans to launch a robotaxi service in Dallas by the end of 2025. This development positions Avride to capitalize on significant market opportunities in autonomous transportation, enhancing its industry presence and offering stakeholders promising growth prospects.

Nebius Group Expands Capital with Additional Class A Share Offering

On September 22, 2025, Nebius Group announced that underwriters exercised their option to purchase an additional 1,621,621 Class A shares in its public offering, priced at $92.50 per share. This move increased the company’s gross proceeds from the Class A offering to approximately $1.15 billion, contributing to a total of $4.3 billion from recent offerings, including convertible notes. This financial maneuver is expected to enhance Nebius Group’s market position and support its growth in the AI infrastructure sector.

Nebius Group Secures $4.2 Billion in Public and Private Offerings

On September 15, 2025, Nebius Group announced the completion of its public offering of Class A ordinary shares and a concurrent private offering of convertible senior notes, generating approximately $4.2 billion in gross proceeds. The company plans to use these funds to finance its growth, including expanding its data center footprint and acquiring additional compute power, as part of its strategy to support its AI infrastructure agreement with Microsoft. This move strengthens Nebius Group’s position in the AI industry and provides significant capital for future expansion.

Nebius Group Announces Major Financial Offerings to Boost Growth

On September 10, 2025, Nebius Group N.V. announced the pricing of two significant financial offerings: a $2.75 billion upsized private offering of convertible senior notes and a $1 billion public offering of Class A ordinary shares. These strategic moves are expected to enhance the company’s capital structure and provide additional resources for future growth, potentially impacting its market positioning and offering new opportunities for investors.

Nebius Group Reports Major Turnaround with 545% Revenue Surge

Nebius Group reported a significant financial turnaround in the first half of 2025, achieving a net income of $398.2 million, compared to a net loss of $185.5 million in the same period of 2024. This improvement was largely driven by a substantial gain from the revaluation of its investment in ClickHouse. The company’s revenue surged by 545% to $156 million, primarily due to the growth of its core AI infrastructure business, Nebius, and increased student enrollment in its edtech platform, TripleTen.

Nebius Group Secures Major AI Infrastructure Deal with Microsoft

On September 8, 2025, Nebius Group announced a significant commercial agreement with Microsoft to provide dedicated GPU infrastructure capacity from its new data center in Vineland, New Jersey, over a five-year period. The deal, valued at up to $19.4 billion, is expected to accelerate Nebius’s AI cloud business growth in 2026 and beyond, with financing for capital expenditure coming from the agreement’s cash flow and potential debt issuance. This strategic partnership underscores Nebius’s position in the AI industry and its commitment to expanding its market presence.

Nebius Group Announces AGM Results and Strategic Decisions

On August 21, 2025, Nebius Group N.V. held its Annual General Meeting of Shareholders, where all proposed resolutions were adopted. Key decisions included the re-appointment of several directors, amendments to the Articles of Association, and authorization for share repurchases and issuance. These outcomes reinforce the company’s strategic direction and governance structure, potentially impacting shareholder value and market positioning.

Nebius Group Reports Strong Q2 2025 Results and Raises Revenue Guidance

On August 7, 2025, Nebius Group N.V. announced its unaudited financial results for the second quarter ending June 30, 2025. The company reported a significant increase in revenue, up 625% year-on-year to $105.1 million, and achieved positive Adjusted EBITDA ahead of plan. Nebius has raised its annualized run-rate revenue guidance for 2025 to between $900 million and $1.1 billion. The company is also in the process of securing more than 1 GW of power by the end of 2026 to support its expansion efforts. This financial performance highlights Nebius’s strong momentum and strategic positioning in the AI infrastructure market.

Nebius Group Announces 2025 Annual General Meeting

On July 24, 2025, Nebius Group N.V. announced its Annual General Meeting of Shareholders, scheduled for August 21, 2025, at its offices in Schiphol, the Netherlands. The meeting will address several key decisions, including the approval of the 2024 annual statutory accounts, the reappointment of board members, amendments to the Articles of Association, and other significant corporate governance matters. These decisions are expected to impact the company’s operational governance and strategic direction, influencing shareholder engagement and potentially affecting market perceptions.