Core Viewpoint - Nebius Group has experienced significant volatility in its stock price, with a recent decline of over 28% from its 52-week high, influenced by a market-wide sell-off and mixed analyst reactions to its Q4 and full-year 2024 financial results [2][3] Financial Performance - For Q4 2024, Nebius reported revenue of $37.9 million, a remarkable 466% year-over-year increase, with its core AI infrastructure segment growing by 602% compared to Q4 2023 [3][4] - Despite the revenue surge, the company faced challenges with profitability, posting an adjusted EBITDA loss of $75.5 million, although this was a 7% improvement from the previous year's loss of $81.3 million [4] - The net loss from continuing operations increased to $136.6 million, a 55% rise year-over-year, while capital expenditures reached $417.6 million in Q4 due to heavy investments in GPU procurement and data center expansion [4][5] - For the full year 2024, Nebius achieved revenue of $117.5 million, a 462% increase from 2023, with an adjusted EBITDA loss of $266.4 million and a net loss of $396.9 million [5] Future Guidance - Nebius provided ambitious guidance for 2025, projecting an annualized run-rate (ARR) of $220 million by March, scaling to between $750 million and $1 billion by December, with full-year revenue expected to be between $500 million and $700 million [6] - The company aims for near-breakeven EBITDA by the end of 2025, supported by plans to expand data center capacity to 100 megawatts, with potential scaling to over 300 megawatts [6] Analyst Sentiment - Analyst reactions to Nebius's Q4 earnings report were mixed, with BWS Financial maintaining a Buy rating and raising its price target from $51 to $60, citing strong Q1 guidance and growth potential [7] - Conversely, Hedgeye Global Technology reversed its bullish stance, removing its long position due to perceived misalignment in management's vision and light guidance, contributing to selling pressure [8][9] - DA Davidson initiated coverage with a Buy rating and a $50 price target, recognizing Nebius as a potential alternative to hyperscaler-dominated AI compute [9] Long-Term Outlook - Despite recent stock pullbacks, there are optimistic long-term prospects for Nebius, driven by increasing demand for AI infrastructure and strong institutional backing, including investments from NVIDIA and other notable firms [10] - The company's guidance for a $1 billion ARR target by year-end indicates aggressive scaling intentions, with NVIDIA's upcoming earnings report expected to provide insights into the AI sector's health and potential benefits for Nebius [11]

Core Insights - Nebius Group N.V. (NASDAQ: NBIS) has been initiated with a "Strong Buy" rating, indicating that the stock is perceived as undervalued due to expected operational expansion [1] Group 1 - The investment coverage of Nebius Group N.V. was initiated in mid-January, highlighting the stock's attractive pricing at that time [1] - The chief investment analyst at a family office emphasizes the importance of filtering vast amounts of information to identify critical investment ideas [1] - The investing group Beyond the Wall Investing provides access to high-quality analysis and insights that institutional market participants prioritize [1]

Core Viewpoint - The artificial intelligence (AI) revolution is driving demand for robust infrastructure, presenting a significant investment opportunity for Nebius Group, which has recently experienced a stock price drop following its earnings report [1][2]. Financial Performance - Nebius Group reported a Q4 2024 adjusted EBITDA loss of $75.5 million and a net loss from continuing operations of $136.6 million, with a full-year adjusted EBITDA loss of $266.4 million and a net loss of $396.9 million [2][3]. - Despite the losses, Q4 revenue surged 466% year-over-year to $37.9 million, driven by a 602% increase in its core AI infrastructure business, with full-year revenue reaching $117.5 million, a 462% increase from the previous year [3][4]. Infrastructure Expansion - The company is expanding its infrastructure, including a new U.S. data center in Kansas City, Missouri, expected to launch by the end of Q1 2025, which will house thousands of NVIDIA Hopper GPUs [4][5]. - Plans include deploying over 22,000 NVIDIA Blackwell GPUs in data centers across the U.S. and Finland in 2025, enhancing computational power significantly [5][11]. Market Position and Growth Potential - Nebius Group's reaffirmed projection of $750 million to $1 billion in annual recurring revenue (ARR) by December 2025 indicates substantial future revenue growth potential [6][11]. - The company operates in a high-growth market with increasing demand for its AI-as-a-service offerings, supported by strategic partnerships with industry leaders like NVIDIA [7][9]. Investment Opportunity - The recent stock price decline may be viewed as a market overreaction, presenting a potential entry point for investors looking to capitalize on the company's long-term growth trajectory [5][10]. - The stock forecast suggests a 65.65% upside potential, with a 12-month price target of $60.00 based on analyst ratings [8].

Core Viewpoint - Investors are showing increased interest in Nebius Group (NBIS) stock following Nvidia's announcement of owning a stake in the AI company [1] Group 1 - Nebius Group's stock price experienced a decline of 9.07% [1] - Nvidia's stock price also saw a decrease of 3.09% [1] - The stock prices referenced were from the afternoon of February 21, 2025, with the video discussing this published on February 23, 2025 [1]

Core Insights - The article discusses the investment positions of The Motley Fool, specifically highlighting its recommendations for Nebius Group and Nvidia [1] Company Positions - The Motley Fool has positions in Nebius Group and Nvidia, indicating a positive outlook on these companies [1] - Parkev Tatevosian, an affiliate of The Motley Fool, may receive compensation for promoting its services, which could influence his opinions [1]

Core Insights - Nvidia has exited its position in SoundHound AI and taken a stake in Nebius Group, a data center stock [2] - Nebius is playing a critical role in the AI revolution and its current valuation appears reasonable [3] Company Background - Nebius was spun off from Yandex, a Russian internet conglomerate, following sanctions imposed by the U.S. and E.U. after Russia's invasion of Ukraine [4] - Nebius raised $700 million in an equity financing round shortly after its Nasdaq debut, with Nvidia participating in this round [5] Strategic Developments - Nebius is investing $1 billion in AI infrastructure across Finland and France, constructing data centers equipped with Nvidia's Hopper and Blackwell GPUs [7] - The company is also expanding its presence in the U.S. with a new data center in Kansas City featuring more Blackwell GPUs [7] Market Position and Valuation - Nebius expects its annual recurring revenue (ARR) to reach at least $220 million by the end of the first quarter, with a long-term goal of $750 million to $1 billion by December [9] - Comparatively, Nebius could be valued between $13.1 billion and $17.5 billion based on a price-to-sales multiple derived from CoreWeave's rumored valuation, while its current market capitalization stands at $10.9 billion [10][11]

Core Viewpoint - The announcement of DeepSeek's R1 large language model costing only $6 million has raised questions about the true costs of AI infrastructure development, impacting investor sentiment towards large tech stocks, while major companies continue to plan significant capital expenditures for AI growth in 2025 [1][2][8] Group 1: Company Developments - Nebius Group, emerging from the restructuring of Yandex, has seen a 67% gain year-to-date and is now focused on AI infrastructure and related businesses [3][4] - Nebius reported a significant revenue increase from $11.4 million in Q1 to approximately $38 million in Q4, with a full-year revenue of $117.5 million for 2024, and aims for a $1 billion annual revenue run rate by the end of 2025 [5] - The company ended Q4 with $2.45 billion in cash and negligible debt, representing over 25% of its total market cap of $9.3 billion [5] Group 2: Investment Insights - Nvidia participated in a $700 million funding round for Nebius and holds over 1 million shares valued at about $33 million, indicating confidence in Nebius's growth potential [6] - Major tech companies, including Microsoft, Meta, Amazon, and Alphabet, plan to spend at least $300 billion on AI capital expenditures in 2025, supporting the ongoing growth of the AI sector [7] - Nebius's Avride business focuses on autonomous driving technologies, and the company's valuation appears reasonable with a forward enterprise value-to-sales ratio of less than 7 if it meets its revenue targets [12]

Company Overview - Nebius Group N.V. is an "AI infrastructure" firm based in Amsterdam, operating nearly a dozen hubs that include data centers, customer-facing facilities, and engineering hubs [1]

Nebius is an Nvidia-backed cloud company.In this video, I will cover Nebius Group's (NBIS -5.76%) recent earnings report and comments from management during the call. Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Feb. 19, 2025. The video was published on Feb. 20, 2025. ...

Group 1 - The company Nebius Group N.V. (NASDAQ: NBIS) has been issued a buy rating in the high teens by the investment service [1] - The article suggests that investors should consider purchasing shares of Nebius Group N.V. [1] - The investment service emphasizes a blended trading and income approach to enhance savings and retirement timelines [1] Group 2 - The investment service offers a money-back guarantee for new users, indicating confidence in their investment ideas [2] - The team behind the service claims to have a proven track record and provides high conviction investment ideas [2]