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Nebius Group N.V. (NBIS)
:NBIS
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Nebius Group
(NASDAQ:NBIS)
Rating:58Neutral
Price Target:
$55.00
▼(-19.66% Downside)
Positive Factors
Data Center Expansion
Nebius Group's expansion of its data center footprint presents substantial revenue opportunities and supports a raised price target.
Market Positioning
Nebius is well positioned in the AI Neocloud market with its full stack software offering and cost advantages.
Revenue Growth
Nebius Group experienced a 90% sequential revenue growth, showcasing the company's strong financial performance.
Negative Factors
Capital Expenditures
Nebius projected a significant increase in capital expenditures, reaching up to $2 billion for the year to meet demand.
Earnings Shortfall
Nebius Group reported first quarter revenue significantly below estimates, highlighting a potential concern for investors.
Negative EBITDA
Adjusted EBITDA for 2024 is expected to be negative, which could impact Nebius Group's financial stability.
Nebius Group (NBIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.32B
Dividend YieldN/A
Average Volume (3M)12.73M
Price to Earnings (P/E)74.5
Beta (1Y)1.56
Revenue Growth-95.06%
EPS Growth1.92%
CountryUS
Employees1,371
SectorCommunication Services
Sector Strength90
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.38
Shares Outstanding202,624,950
10 Day Avg. Volume17,897,107
30 Day Avg. Volume12,731,938
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue1.11K
Enterprise Value/Gross Profit5.06K
Enterprise Value/Ebitda-170.87
Forecast
1Y Price Target
$74.67Price Target Upside9.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Nebius Group Business Overview & Revenue Model
Company DescriptionNebius 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 MoneyNebius Group makes money through a subscription-based revenue model, where businesses pay for access to its cloud computing services. Key revenue streams include fees for cloud storage, computing power, and additional services such as data analytics and machine learning tools. The company also generates income from consulting services and technical support offered to its clients. Significant partnerships with technology providers and enterprise clients contribute to its earnings by expanding its market reach and enhancing its service offerings. Through these diverse revenue streams, Nebius Group capitalizes on the growing demand for cloud solutions in the digital age.
Nebius Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 24.27%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presents a largely positive sentiment with significant revenue growth, positive EBITDA in core business, and strong customer acquisitions. However, there are concerns regarding oversold GPUs, full-year negative EBITDA, and potential tariff impacts.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Nebius Group reported $105.1 million in revenue, up 625% year-over-year and 106% quarter-over-quarter.
Positive EBITDA
The company became EBITDA positive in its core AI infrastructure business ahead of projections.
Increased ARR Guidance
Annualized run rate revenue guidance was increased from $700 million - $1 billion to $900 million - $1.1 billion.
Data Center Expansion
Nebius is set to have 220 megawatts of connected power by the end of the year and is securing more than 1 gigawatt by the end of 2026.
Major Customer Wins
The company added large global technology customers such as Cloudflare, Prosus, and Shopify.
Strong Financing Position
Raised over $4 billion in capital and access to billions more through noncore businesses and equity stakes.
Negative Updates
Oversold Previous Generation GPUs
Growth was hindered by being oversold on previous generation hoppers, awaiting new GPU generation.
Full Year Negative EBITDA
Despite positive adjusted EBITDA in core business, group adjusted EBITDA will remain negative for the full year.
Tariff Concerns
Uncertainty around U.S. tariffs could potentially affect business margins.
Company Guidance
During the Nebius Group's Second Quarter 2025 Earnings Conference Call, several key metrics were highlighted, signaling strong growth and future potential. The company reported a revenue of $105.1 million, marking a staggering 625% increase year-over-year and a 106% rise quarter-over-quarter. This growth was driven by robust demand in their core AI infrastructure business, which also achieved positive EBITDA ahead of projections. The annualized run rate revenue soared from $249 million in March to $430 million in June, prompting an increase in the year-end ARR guidance from an initial $700 million to $1 billion to a revised $900 million to $1.1 billion. Additionally, the company aims to secure 220 megawatts of connected power by the end of the year, with plans to reach over 1 gigawatt by 2026. Nebius also successfully expanded its customer base, adding major clients like Shopify and Cloudflare, while continuing to invest in capacity with a maintained CapEx guidance of around $2 billion for 2025.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.40
Negative
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.50
Neutral
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.30
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | ― | 20.90M | 13.50M | 4.78B | 2.93B |
| Gross Profit | ― | -11.00M | -14.90M | 2.44B | 1.78B |
| EBITDA | ― | -290.70M | -128.50M | 512.37M | 930.84M |
| Net Income | ― | 241.30M | 745.60M | -196.71M | 332.14M |
Balance Sheet | |||||
| Total Assets | 3.55B | 8.89B | 8.28B | 6.91B | 6.93B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 1.16B | 1.13B | 1.44B | 3.20B |
| Total Debt | 36.40M | 2.36B | 1.39B | 1.89B | 1.46B |
| Total Liabilities | 294.90M | 5.54B | 3.74B | 3.25B | 2.25B |
| Stockholders Equity | 3.25B | 3.35B | 4.25B | 3.46B | 4.37B |
Cash Flow | |||||
| Free Cash Flow | -562.10M | 746.40M | ― | ― | 108.23M |
| Operating Cash Flow | 245.60M | 829.80M | 559.57M | 124.62M | 438.20M |
| Investing Cash Flow | 311.60M | -1.92B | ― | 294.94M | ― |
| Financing Cash Flow | 825.50M | 472.75M | ― | ― | 1.88B |
Nebius Group Technical Analysis
Positive
68.46
Price Trends
52.79
Positive
40.35
Positive
35.02
Positive
Market Momentum
5.57
Negative
65.93
Neutral
81.49
Negative
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 68.46 is above the 20-day moving average (MA) of 57.78, above the 50-day MA of 52.79, and above the 200-day MA of 35.02, indicating a bullish trend. The MACD of 5.57 indicates Negative momentum. The RSI at 65.93 is Neutral, neither overbought nor oversold. The STOCH value of 81.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBIS.
Nebius Group Risk Analysis
Nebius Group disclosed 53 risk factors in its most recent earnings report. Nebius Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nebius Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $858.42M | 19.41 | 34.34% | ― | 92.91% | ― | |
73 Outperform | $1.47B | 22.30 | 9.18% | 5.06% | 26.71% | -23.67% | |
70 Outperform | $1.96B | 14.48 | 20.13% | ― | 5.37% | 13.08% | |
60 Neutral | $44.01B | 1.91 | -11.93% | 4.00% | 2.46% | -39.70% | |
58 Neutral | $16.32B | 74.49 | 4.95% | ― | -95.06% | 1.92% | |
51 Neutral | $2.72B | ― | -8.49% | ― | -23.79% | -138.59% | |
| ― | $4.84B | ― | -8.28% | ― | ― | ― |
* Communication Services Sector Average
Performance Comparison
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68.46
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.