Nebius Group (NBIS) AI Stock Analysis

• Market Cap: $32.54B
• Dividend Yield: N/A
• Average Volume (3M): 21.25M
• Price to Earnings (P/E): 141.0
• Beta (1Y): 1.71
• 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: 19,302,322
• 30 Day Avg. Volume: 21,252,963
• 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: 0.39
• Enterprise Value/Revenue: 108.02
• Enterprise Value/Gross Profit: -492.34
• Enterprise Value/Ebitda: -563.10
• 1Y Price Target: $139.80
• Price Target Upside: 7.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• Price Target: $101.00 ▼(-22.06% Downside)

The overall stock score of 60 reflects a mixed outlook. The most significant factor is the company's financial performance, which is currently weak due to declining revenues and profitability. However, strong technical indicators and positive earnings call sentiment provide some optimism. The high P/E ratio suggests overvaluation, which is a concern for potential investors.

Positive Factors

Strategic Partnerships

The multi-billion dollar agreement with Microsoft enhances Nebius's market position in AI infrastructure, providing a stable revenue stream and growth opportunities. This partnership is expected to accelerate the company's AI cloud business, supporting long-term expansion and innovation.

Revenue Growth

Significant revenue growth indicates strong market demand and effective business strategies. This trend supports the company's ability to scale operations and improve financial health, positioning Nebius well for future expansion in the cloud computing sector.

AI Cloud Infrastructure Expansion

The rapid expansion in AI cloud infrastructure reflects Nebius's capability to meet rising demand for AI solutions. This positions the company as a key player in the growing AI market, enhancing its competitive edge and long-term business prospects.

Negative Factors

Declining Revenue

The sharp decline in revenue raises concerns about Nebius's ability to maintain its market position and financial stability. This trend could impact the company's long-term growth prospects and necessitates strategic adjustments to reverse the downturn.

Negative Full Year Adjusted EBITDA

A projected negative full-year EBITDA indicates potential financial struggles, affecting Nebius's ability to invest in growth and innovation. This could hinder the company's competitive positioning and long-term profitability if not addressed.

Rising Debt Levels

Rising debt levels can strain Nebius's cash flow and limit financial flexibility. This poses risks to the company's ability to fund operations and growth initiatives, potentially impacting its long-term financial health and 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 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 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: 129.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 129.58 is above the 20-day moving average (MA) of 113.72, above the 50-day MA of 88.16, and above the 200-day MA of 49.11, indicating a bullish trend. The MACD of 12.94 indicates Negative momentum. The RSI at 73.63 is Negative, neither overbought nor oversold. The STOCH value of 77.96 is Neutral, 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	$20.67B	10.87	48.08%	―	17.00%	901.05%
TWLO	67 Neutral	$16.44B	879.47	0.24%	―	11.56%	―
Z	66 Neutral	$16.75B	―	-1.34%	―	15.31%	56.19%
MTCH	62 Neutral	$7.57B	15.49	-865.98%	1.18%	-0.60%	-11.05%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NBIS	60 Neutral	$32.54B	140.99	4.95%	―	-95.06%	1.92%
SNAP	58 Neutral	$13.15B	―	-26.42%	―	13.18%	54.39%