Nebius Group (NBIS) AI Stock Analysis

• Market Cap: $27.95B
• Dividend Yield: N/A
• Average Volume (3M): 17.18M
• Price to Earnings (P/E): 119.6
• Beta (1Y): 1.91
• 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): -0.55
• Shares Outstanding: 215,442,290
• 10 Day Avg. Volume: 15,326,317
• 30 Day Avg. Volume: 17,183,220
• PEG Ratio: 0.03
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 66.24
• P/FCF Ratio: -13.91
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 120.91
• Enterprise Value/Gross Profit: 274.19
• Enterprise Value/Ebitda: -63.57
• 1Y Price Target: $155.75
• Price Target Upside: 41.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $135.00 ▲(22.78% Upside)

The overall stock score of 56 reflects significant financial challenges and overvaluation concerns, despite strong growth prospects and positive sentiment from recent earnings. The company's ability to manage capacity constraints and capital expenditures will be crucial for future performance.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and effective business execution, enhancing long-term financial stability.

Strategic Partnerships

Strategic partnerships with leading tech firms strengthen Nebius's competitive edge in AI, fostering innovation and market expansion.

AI Infrastructure Expansion

The expansion in AI infrastructure positions Nebius as a leader in a high-growth sector, supporting future revenue and market share gains.

Negative Factors

Financial Challenges

Persistent financial challenges could hinder Nebius's ability to invest in growth and maintain competitive positioning over the long term.

Rising Debt Levels

Increased leverage may strain financial flexibility, impacting Nebius's capacity to navigate economic fluctuations and invest in strategic initiatives.

Negative Full Year EBITDA

Projected negative EBITDA at the group level indicates ongoing operational inefficiencies, potentially affecting long-term profitability and growth.

Nebius Group Business Overview & Revenue Model

Company Description

Nebius Group (NBIS) is a technology-driven company specializing in cloud computing solutions, data analytics, and artificial intelligence services. The company operates primarily in the information technology sector, providing a comprehensive range of products and services that cater to businesses looking to enhance their digital capabilities. Nebius Group focuses on developing innovative software applications, cloud infrastructure, and data management systems that empower organizations to optimize their operations and make data-driven decisions.

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	117.50M	20.90M	13.50M	4.76B	2.95B
Gross Profit	44.10M	-11.00M	-14.90M	2.43B	1.79B
EBITDA	-363.40M	-298.20M	-130.50M	109.87M	424.50M
Net Income	-641.40M	241.30M	745.60M	-196.01M	333.49M
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: 109.95
• 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 109.95 is below the 20-day moving average (MA) of 116.59, above the 50-day MA of 107.84, and above the 200-day MA of 57.43, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 19.82 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	73 Outperform	$18.30B	9.39	51.49%	―	16.79%	819.94%
TWLO	71 Outperform	$19.36B	306.26	0.83%	―	12.84%	―
MTCH	63 Neutral	$7.76B	15.30	―	1.14%	-0.46%	-2.75%
SNAP	62 Neutral	$13.87B	―	-22.38%	―	11.75%	49.19%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
Z	59 Neutral	$17.56B	―	-0.66%	―	15.17%	75.90%
NBIS	56 Neutral	$27.95B	119.63	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.