Where Will Nebius Stock Be in 1 Year?

Core Insights - Nebius, formerly Yandex, has transitioned from a Russian search engine to an AI infrastructure services provider based in Amsterdam, following the divestment of its Russian assets and rebranding [2][3] - The company's stock has experienced significant growth, trading at approximately $100, driven by the booming AI market and strategic partnerships with major tech firms [3][10] Business Model - Nebius operates one first-party data center in Finland and leases additional data centers in Missouri, France, Iceland, and the U.K., with plans for a second data center in New Jersey [4] - The company utilizes Nvidia's high-performance GPUs in its data centers, allowing clients to outsource their AI processing needs instead of investing in their own infrastructure [5] - Nebius differentiates itself by offering managed software services and dedicated solutions for specific markets, positioning itself as a full-stack AI infrastructure provider [6] Financial Performance - In 2024, Nebius reported a revenue increase of 462% to $117.5 million, although it recorded an adjusted EBITDA of negative $266.4 million [8] - For the first nine months of 2025, revenue surged another 437% year over year to $302.1 million, with adjusted EBITDA improving from negative $162.4 million to negative $79.9 million [8] - The company anticipates an annualized revenue run rate of $7 billion to $9 billion by the end of 2026, driven by significant contracts with Microsoft and Meta [9][10] Future Projections - Analysts project Nebius' revenue to rise 392% to $578.2 million in 2025, 191% to $1.68 billion in 2026, and 158% to $4.34 billion in 2027, with expectations of positive adjusted EBITDA in 2026 [11] - The company's market cap is currently $25.7 billion, trading at 15 times next year's sales, with potential for significant growth if it meets or exceeds analyst expectations [13][14]