Is Nebius Stock Set to Double in 2026?

Core Viewpoint - Nebius Group's stock has experienced significant growth in 2025, with a price increase of approximately 225%, despite a 33% decline from its all-time highs in October [1] Group 1: Company Overview - Nebius was spun out from Yandex, the Russian equivalent of Google, and is now headquartered in Amsterdam, focusing on AI infrastructure [4] - The company provides full-stack capabilities with high-performance graphics processing units (GPUs) and has major clients like Meta Platforms and Microsoft, with multi-year contracts [5] Group 2: Financial Performance - Nebius reported a remarkable revenue growth of 355% year-over-year, reaching $146 million in Q3, although it remains unprofitable with a net income loss of $120 million [7][10] - For the full year, Nebius expects revenue between $500 million to $550 million, with a projected annual recurring revenue (ARR) of $900 million to $1.1 billion, indicating strong growth potential [8] - Management anticipates achieving an ARR of $7 billion to $9 billion by the end of 2026, which would be seven times its current ARR [9] Group 3: Market Position and Valuation - Nebius stock is currently valued at nearly 60 times sales, which is considered expensive, especially given its unprofitability [11] - The company's market capitalization stands at $22 billion [12] - The future performance of Nebius stock in 2026 will largely depend on market sentiment towards AI, with potential for significant price movement based on investor confidence [14]