Latest news with #Nebius'
Yahoo
3 days ago
- Business
- Yahoo
Why Shares of Nebius Group Are Soaring This Week
Nebius successfully raised $1 billion through convertible notes earlier this week. The new capital will help the company accelerate growth. A Wall Street analyst initiated coverage on the company with a very bullish price target. 10 stocks we like better than Nebius Group › Since last Friday, shares of the artificial intelligence (AI) data center company Nebius Group (NASDAQ: NBIS) had soared roughly 29%, as of 11:57 a.m. ET Thursday. The company successfully raised capital this week and received more positive sentiment from Wall Street. On Monday, Nebius announced that it had successfully raised $1 billion through two different tranches of unsecured convertible notes. Half is in the form of 2% convertible notes due 2029, while the other half is 3% convertible notes due 2031. Nebius' founder and CEO Arkady Volozh said in a statement: Since our $700 million equity financing in December 2024, we have been scaling rapidly and expanding our global AI infrastructure footprint. The fresh capital we are raising now gives us more firepower to go faster, paving the way for increased revenue opportunities in 2026 and further accelerating us toward our medium-term target of mid-single-digit billions of dollars in revenue as a high-margin business, with potential upside. This morning, Arete Securities analyst Andrew Beale initiated coverage of Nebius with a buy rating and $84 price target, implying significant upside from current levels. Beale also said he prefers Nebius to another larger and similar company, CoreWeave, due to Nebius' more attractive valuation. While CoreWeave is more of a pure play on AI, Beale thinks Nebius' neo-cloud valuation is too low. Nebius and CoreWeave are essentially in the business of running data centers for customers looking to build and run AI applications on, so if the AI industry continues to thrive, these two companies stand to benefit. While I believe in AI's potential, I usually stay away from most AI stocks because of extremely high valuations. Nebius, however, actually came to the market last year at a very affordable valuation. The company had been delisted from the Nasdaq for close to three years due to being a Russian-owned company, although this is no longer the case. After the stock's big run, the company trades at close to an $11 billion market cap, so it's more expensive than it once was. However, if management can hit its mid-single-digit billions revenue guidance over the next few years, the stock won't look expensive at today's value. Before you buy stock in Nebius Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nebius Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Bram Berkowitz has positions in Nebius Group. The Motley Fool has positions in and recommends Nebius Group. The Motley Fool has a disclosure policy. Why Shares of Nebius Group Are Soaring This Week was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Why Nebius Group Stock Soared Higher Today
One stock analyst sees more than 100% upside for Nebius Group shares. Nebius' revenue growth is strong and accelerating. The artificial intelligence (AI) cloud services provider has a large cash position and recently announced another $1 billion capital raise. 10 stocks we like better than Nebius Group › Shares of artificial intelligence (AI) cloud service provider Nebius Group (NASDAQ: NBIS) are surging today. The stock jumped after one independent equity research firm began coverage on the stock with a very bullish outlook. Nebius stock was trading higher by 19.5% as of 11:05 a.m. ET. London-based Arete Research analyst Andrew Beale began coverage of the stock with a "buy" rating and a price target that seems to have taken investors by surprise. Reports say Beale set $84 as his price target, which represents a 113% increase over Wednesday's closing price. The analyst sees that significant upside after the Netherlands-based Nebius recently reported first-quarter revenue growth of 385%. That was off a low base versus last year, but the company sees continued expansion at an accelerated rate. Beale's optimism stems from the nearly 700% increase in Nebius' annualized revenue run rate. Management expects to at least triple that annualized level of revenue by the fourth quarter of this year. Its AI cloud capabilities are in high demand, and Nebius reports a strong $1.44 billion cash position as of March 31. That cash will be needed for the continued investment in cloud infrastructure to continue to scale the business. Nebius also announced a $1 billion capital raise on June 2 from the sale of convertible notes. Nebius also has a partnership with AI leader Nvidia, offering the new Blackwell Ultra AI factory platform to businesses looking "to build the next generation of agentic, reasoning, and physical AI." Investors still need to consider the risks. In addition to its capital spending needs, Nebius seeks to achieve a goal of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) later this year. That's one key metric investors should continue to monitor. That would instill more confidence in the stock and the company's ability to continue to achieve its high growth trajectory. Before you buy stock in Nebius Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nebius Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Howard Smith has positions in Nebius Group and Nvidia. The Motley Fool has positions in and recommends Nebius Group and Nvidia. The Motley Fool has a disclosure policy. Why Nebius Group Stock Soared Higher Today was originally published by The Motley Fool 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
