Core Company Overview - The company has experienced significant growth, outperforming both the tech sector and the S&P 500 by approximately 160% over the past year, despite a recent downturn [2][8] - The stock has seen a decline of over 40% from its all-time highs in June, with concerns surrounding investments in AI, although major customers continue to support these investments [8] Technical Analysis - The stock is currently trending downward, with a key low point near $105, and further potential lows around $85.26 [4][5] - Momentum indicators show a breakdown, with the RSI falling below the 50 midline, indicating worsening momentum [5][6] - The volume profile suggests limited trading volume until reaching a lower standard deviation channel near $68.50 [6] Options Strategy - A bullish options strategy is proposed, anticipating a rebound post-earnings, with the stock currently trading around $109 [9][10] - The options market is pricing in a potential move of approximately ±13%, with the last earnings report resulting in a 16% drop [10] - The suggested strategy involves a bullish call diagonal, buying a $110 strike call and selling a $122 strike call, with a risk of $600 and a target profitability above $112 [11][12][13]

Core Insights - Nebius Group's stock experienced significant growth, rising over 25% in August and 64.3% in September, driven by a major contract with Microsoft [1][3][4] Company Developments - Nebius announced a $17.4 billion agreement with Microsoft to provide dedicated capacity for AI workloads from its New Jersey data center, effective for five years starting later this year [3][4] - The CEO of Nebius indicated that this deal is indicative of future contracts with leading AI labs and tech companies, highlighting the strong performance of its core AI cloud business [4] Analyst Sentiment - Analysts have responded positively to the Microsoft deal, with several firms raising their price targets significantly: BWS Financial increased its target to $130 from $90, DA Davidson to $125 from $75, and Northland to $206 from $77, reflecting a bullish outlook on Nebius stock [6][7][8] - Despite the stock's high valuation at 122 times sales, analysts suggest that the momentum may continue, although some investors may seek better buying opportunities elsewhere [6][9]