Latest news with #NBIS
Business Insider
3 days ago
- Business
- Business Insider
Diversification Strategy Sparks Bullish Impetus in Nebius Group Stock (NBIS)
When I first invested in Nebius Group (NBIS) earlier this year, I approached it with cautious optimism—hyper- growth stocks carry inherent risk. Today, with the stock up over 50%, I remain confident and recently raised my 12-month price target to $60, implying further upside of over 50%. Confident Investing Starts Here: While its EV/Sales multiple above 50x may appear steep, it's less relevant for a vertically integrated AI infrastructure leader positioned to capitalize on current momentum. In my view, Nebius remains one of the most compelling growth stories in tech today. Nebius's Unstoppable Growth Drives Investor Frenzy Nebius's recent growth is off the charts. Nebius posted exceptional growth in Q1 FY2025, reporting $55.3 million in revenue —a 385% year-over-year increase—driven by surging global demand for AI and generative computing solutions. Management projects annual recurring revenue (ARR) between $750 million and $1 billion by year-end, underscoring the company's ambitious trajectory. What sets Nebius apart is its diversified, vertically integrated approach. Beyond its core AI cloud services, the company operates in several high-growth areas: Avride, an autonomous mobility venture; Toloka, a data-labeling and AI development platform backed by Jeff Bezos's venture arm; and TripleTen, an edtech startup focused on tech career reskilling. This strategic breadth positions Nebius to tap into multiple revenue streams within the expanding AI ecosystem. While some still associate the company with its Yandex origins, Nebius has taken definitive steps to establish its independence, restructuring in 2022, relocating its headquarters to Amsterdam, and relisting on Nasdaq. Its $700 million funding round in December, led by investors including NVIDIA and Accel, affirms growing confidence in Nebius as a credible and emerging leader in global AI infrastructure. Investors Await Rewards as Profitability Approaches While Nebius continues to invest aggressively, it is beginning to demonstrate operating leverage. In the same quarter that delivered standout revenue growth, the company reduced its adjusted EBITDA loss from $70.9 million a year ago to $62.6 million—an encouraging sign of improving cost efficiency. A year ago, operating expenses stood at an unsustainable 827% of revenue; that figure has since declined to 334%. Though still high, the downward trend points toward greater operational discipline. Nebius's cloud-based model is inherently scalable, allowing margins to expand as revenue grows and fixed costs are spread across a larger customer base. Management is targeting adjusted EBITDA profitability in the second half of FY2025—a goal that appears increasingly attainable given the company's accelerating top-line growth and improving cost structure Valuation Is Always Relative Let's tackle the elephant in the room—valuation. Based on an EV/Sales multiple of approximately 50x, Nebius appears expensive. For reference, Snowflake (SNOW) had a near-peak multiple of around 150x EV/Sales in early 2021 and fell rapidly to around 20x as revenues scaled. It's reasonable to expect Nebius's valuation will experience a similar development. Currently, Nebius stock exhibits extreme bullishness, as indicated by technical indicators, including the 14-day RSI, which stands at around 70. High volatility and irrational exuberance are typical among rapidly growing stocks, so investors should prepare for volatility, even when it's unlikely or difficult to ascertain, by examining the stock's price performance relative to its peers. Sentiment is always a risk with highly valued hyper-growth plays. However, when I consider the company's peers, Databricks or CoreWeave, Nebius's valuation is not entirely out of sync with the valuation models I commonly see across the AI infrastructure space. High multiples today can come back to earth in the near future as revenues move on up, making the current premium worthwhile. Is Nebius a Good Stock to Buy? On Wall Street, Nebius has a consensus Strong Buy rating based on three Buys, zero Holds, and zero Sells. The average NBIS stock price target of $52.33 indicates a 37% upside potential over the next 12 months. However, if it reaches $60, we're looking at a return of over 50% within 12 months. I'm Sticking to My Guns on Nebius I continue to view Nebius stock as one of the more compelling high-growth opportunities in today's market. While the stock may appear volatile and expensive by traditional metrics, its strong revenue growth, improving margins, strategic geopolitical positioning, and diversified revenue streams justify the current valuation. I maintain a bullish price target of $60, reflecting my confidence in management's execution capabilities and the potential for a favorable macro environment next year. For investors seeking high-risk, high-reward opportunities, Nebius stands out as a resilient and promising player in the AI space.
Business Wire
5 days ago
- Business
- Business Wire
Marc Boroditsky Joins Nebius as Chief Revenue Officer
AMSTERDAM--(BUSINESS WIRE)--Nebius (NASDAQ: NBIS), a leading AI infrastructure company, today announced the appointment of Marc Boroditsky as Chief Revenue Officer as the company continues to build out its global sales team. A seasoned senior tech executive, Marc has a strong global go-to-market track record of driving high growth – in five years at Twilio he grew paying customers six times, and revenue more than 10 times to $4 billion. Previously he founded several successful companies, and served as a senior leader at Oracle and most recently Cloudflare. Arkady Volozh, founder and CEO of Nebius, welcomed Marc to the company: 'We are building a global company and planning to grow many times in the coming years. Marc is the perfect candidate to help Nebius scale to multiple billions of dollars of revenue by unlocking sales across geographies, sectors and enterprise customers.' Marc Boroditsky, incoming Chief Revenue Officer of Nebius, said: 'I'm amazed at how much the team at Nebius has built in such a short time. This company is one of the best kept secrets in AI – and that's about to change. Nebius has all of the key ingredients to lead the AI infrastructure market – industry-leading technology, an outstanding team and ready access to growth capital. I am thrilled to be joining Arkady and the team and look forward to building a high performance go-to-market organization as Chief Revenue Officer.' About Nebius Nebius is a technology company building full-stack infrastructure to service the explosive growth of the global AI industry, including large-scale GPU clusters, an AI-native cloud platform, and tools and services for developers. Headquartered in Amsterdam and listed on Nasdaq, the Company has a global footprint with R&D hubs across Europe, North America and Israel. Nebius's AI Cloud has been built from the ground up for intensive AI workloads. With proprietary software and hardware designed in-house, Nebius gives AI builders the compute, storage, managed services and tools they need to build, tune and run their models. Nebius is one of only a handful of companies globally to hold Reference Platform NVIDIA Cloud Partner status, underscoring its expertise in designing and deploying a full stack of hardware and software infrastructure to NVIDIA's Reference Architecture. To learn more please visit Disclaimer Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding our future financial and business performance, our business and strategy, expected growth, planned investments and capital expenditure, capacity expansion plans, anticipated future financing transactions and expected financial results, are forward-looking statements. The words 'anticipate,' 'believe,' 'continue,' 'estimate,' 'expect,' 'guide,' 'intend,' 'likely,' 'may,' 'will' and similar expressions and their negatives are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from the results predicted or implied by such statements, and our reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted or implied by such statements include, among others: our ability to build our businesses to the desired scale, competitive pressures, technological developments, our ability to secure and retain clients, our ability to secure capital to accommodate the growth of the business, unpredictable sales cycles, potential pricing pressures, as well as those risks and uncertainties related to our continuing businesses included under the captions 'Risk Factors' and 'Operating and Financial Review and Prospects' in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the Securities and Exchange Commission ('SEC') on April 30, 2025, which are available on our investor relations website at and on the SEC website at All information in this press release is as of May 28, 2025 (unless stated otherwise). Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. In addition, statements that 'we believe' and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.
Yahoo
21-05-2025
- Business
- Yahoo
Nebius' Q1 Loss Widens Y/Y, Revenues Rise on Strong Core AI Growth
Nebius Group N.V. NBIS reported first-quarter 2025 adjusted net loss of $92.5 million, 19% wider than a loss of $77.6 million incurred a year company's revenues surged 385% year over year to $55.3 million. The increase in sales was primarily driven by strong growth in its core artificial intelligence (AI) business. With R&D hubs across Europe, North America and Israel, Nebius' core business is an AI cloud platform designed for intensive workloads, powered by in-house developed software and hardware. The Group also operates businesses under distinct brands, including Avride (autonomous driving technology) and TripleTen (a leading U.S.-based edtech platform for tech career reskilling). Nebius holds equity stakes in companies like ClickHouse and Toloka, which will be deconsolidated following a second-quarter 2025 investment round. Going forward, Toloka's results will be treated as an equity method investment and reclassified as discontinued operations for prior periods. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Nebius Group N.V. price-consensus-eps-surprise-chart | Nebius Group N.V. Quote On May 7, 2025, Nebius Group N.V. announced a strategic investment in its AI data solutions business, Toloka. The round was led by Bezos Expeditions, with participation from Shopify CTO Mikhail Parakhin. This investment marks a key milestone in Toloka's growth, enabling it to scale rapidly and enhance its focus as global demand for high-quality AI data continues to rise. NBIS reported an adjusted EBITDA loss of $62.6 million for the first quarter, narrower than the $70.9 million loss in the prior-year quarter. Sales, general and administrative expenses increased 29% year over year to $66.1 million. As of March 31, 2025, NBIS' loss from operation was $129.5 million compared with a loss of $82.9 million in the year-ago period. As of March 31, 2025, NBIS had $1,447 million of cash and cash equivalents compared with $2449.6 million as of Dec. 31, 2024. Nebius Group is carrying strong momentum into second-quarter 2025 and remains confident in achieving its full-year ARR guidance of $750 million to $1 billion. For 2025, the company also reaffirmed its overall revenue guidance of $500 million to $700 million. While adjusted EBITDA is expected to remain negative for the full year, Nebius plans to turn positive in the second half of 2025. The company has raised its 2025 capital expenditure forecast to approximately $2 billion from the previous estimate of $1.5 billion, primarily due to some planned fourth-quarter spending shifting into early first quarter. Nebius currently carries a Zacks Rank #3 (Hold). Shares of the company have surged 66.6% in the past six months compared with the Zacks Internet - Software and Services industry's growth of 26.2%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Image Source: Zacks Investment Research Cadence Design Systems CDNS reported first-quarter 2025 non-GAAP earnings per share (EPS) of $1.57, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 34.2% year over year, exceeding management's guided range of $1.46-$1.52. Revenues of $1.242 billion topped the Zacks Consensus Estimate by 0.3% and increased 23% year over year. CDNS's top line was driven by broad-based demand for its solutions amid robust design activity. In the past year, shares of CDNS have jumped 9.5%. SAP SE SAP reported first-quarter 2025 non-IFRS EPS of €1.44 ($1.51), which increased 79% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.39. Driven by momentum in the cloud business, SAP reported total revenues on a non-IFRS basis of €9.01 billion ($9.48 billion), which increased 12.1% year over year (up 11% at constant currency or cc). The Zacks Consensus estimate was pegged at $9.78 billion. In the past year, shares of SAP have soared 54.3%. Simulations Plus, Inc. SLP second-quarter fiscal 2025 adjusted earnings of 31 cents per share, which fell 3% year over year. However, the figure surpassed the Zacks Consensus Estimate of 25 cents per share. Quarterly revenues jumped 23% year over year to $22.4 million, driven by increasing momentum across its software and services business segments. The growing uptake of its flagship solutions, including GastroPlus, MonolixSuite and ADMET Predictor, fueled the top-line expansion. In the past six months, shares of SLP have surged 2.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SAP SE (SAP) : Free Stock Analysis Report Simulations Plus, Inc. (SLP) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
Nebius Group (NBIS) Posts Q1 2025 Results Highlighting Growth and Regional Expansion
Nebius Group N.V. (NASDAQ:NBIS) reported results for the fiscal first quarter of 2025 on Tuesday and logged a 385% year-over-year increase in revenue which reached $55.3 million. This was primarily driven by an explosive growth in its core AI infrastructure business. At the end of Q1 2025, the annualized run-rate revenue (ARR) for its core infrastructure business reached $249 million, reflecting a 684% increase compared to the previous year. Arkady Volozh, Founder and CEO of Nebius Group N.V. (NASDAQ:NBIS), noted that the company is witnessing continued growth in Q2, reflected by April 2025 ARR of $310 million. However, regardless of the growth, the Adjusted EBITDA was negative, with a loss of $62.6 million compared to a loss of $70.9 million a year ago. Volozh, in his shareholder letter for Q1 2025, highlighted that the company is on track to achieve $750 million to $1 billion in ARR by the end of the year, and he expects the EBITDA to turn positive in the second half of 2025. In addition, Nebius Group N.V. (NASDAQ:NBIS) has been expanding its global footprint to drive growth. Volozh noted that in just three quarters, the company has expanded from a single location in Finland to five locations across Europe, the United States, and the Middle East. Previously, on May 19, DA Davidson analyst Alexander Platt raised his price target on the stock from $35 to $45, while maintaining a Buy rating. Platt noted the company's regional expansion strategy to be one of the factors behind his rating upgrade. While we acknowledge the potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NBIS and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Why Nebius Group N.V. (NBIS) Soared Today
We recently published a list of . In this article, we are going to take a look at where Nebius Group N.V. (NASDAQ:NBIS) stands against other stocks that soared by double digits today. The stock market kicked off the trading week brimming with optimism after the US and China announced a tariff truce on each other's goods. The tech-heavy Nasdaq booked the largest gains among the three major indices, rallying 4.85 percent. The S&P 500 followed with a 3.26-percent increase, and the Dow Jones, with 2.81 percent. Over the weekend, the US and China reached a 90-day deal to lower tariffs on each other's imports. US taxes on Chinese imports will drop to 30 percent from 145 percent previously, while China's tariffs on US imports will drop to 10 percent from 125 percent earlier. Beyond the major indices, 10 companies finished the week stronger, booking double-digit gains during the day. In this article, we name Monday's 10 top performers and detail the reasons behind their strong performance. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. Nebius Group extended its winning streak for a fifth consecutive day on Monday, jumping 17.93 percent to finish at $33.34 apiece as investors snapped up shares following news that one of its subsidiaries is planning to raise hundreds of millions in fresh funds that could potentially push its valuation to $6 billion. According to reports, ClickHouse is in advanced negotiations with key investors to raise funds to grow its presence in the competitive data analytics market. Following the report, Nebius Group N.V. (NASDAQ:NBIS) earned a 'buy' recommendation from DA Davidson, coupled with a higher price target of $35 versus the $30 previously. In other recent news, Nebius Group N.V. (NASDAQ:NBIS) welcomed another key investment from billionaire Jeff Bezos for its subsidiary, Toloka, with participation from Shopify's chief technology officer, Mikhail Parakhin. The investment marked a pivotal step for Toloka as it is expected to scale up and sharpen its strategic focus amid accelerating global demand for reliable, high-quality AI data solutions. Overall, NBIS ranks 6th on our list of stocks that soared by double digits today. While we acknowledge the potential of NBIS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NBIS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
