Nebius Group N.V.(US:NBIS) Yahoo Finance·2025-10-17 20:01Core Viewpoint - Nebius Group's stock has experienced significant growth this year, quadrupling in value, but concerns about an AI bubble have led to a recent decline in share price [1][3]. Group 1: Stock Performance - Nebius Group's shares have increased fourfold year to date, driven by interest in its AI neocloud services from major tech companies [1]. - Following a multibillion-dollar deal with Microsoft, Nebius's stock more than doubled within a month [3]. - Despite the recent pullback, Nebius's market capitalization remains over $28 billion [4]. Group 2: Financial Outlook - Management has guided for an annualized run rate revenue (ARR) of approximately $1 billion for the year [4]. - The current price-to-sales (P/S) ratio of about 28 is considered unsustainable, indicating that either revenue must continue to grow significantly or the stock price will need to adjust downward [4]. Group 3: Market Sentiment - Concerns about an AI bubble are being echoed in various media outlets, with articles suggesting that stocks like Nebius may be overvalued [4]. - The excitement surrounding Nebius stock may have led to overvaluation, as indicated by the recent decline in share price [4].