Key Takeaways NBIS will report Q4 results Feb. 12, with the consensus implying a 44-cent loss and $232.2 million in revenue.Nebius is scaling its AI cloud with new platform releases and expanded global data center capacity.NBIS began contributions from Microsoft and Meta contracts in Q4, while facing heavy capex and supply woes.Nebius Group N.V. (NBIS) will report fourth-quarter 2025 results on Feb. 12, before market open.The Zacks Consensus Estimate for the bottom line for the to-be-reported quarter is peg ...

Core Insights - Nebius Group N.V. (NBIS) and Amazon.com, Inc. (AMZN) present distinct investment profiles in the AI cloud sector, with NBIS focusing on high growth and direct exposure to AI infrastructure demand, while AMZN offers stability and diversification through its established AWS platform [1][2] Group 1: Nebius Group N.V. (NBIS) - Nebius operates in a supply-constrained AI infrastructure market, targeting a contracted power capacity increase to 2.5 gigawatts by 2026 from 1 gigawatt, with 800 megawatts to 1 gigawatt expected to be operational by the end of 2026 [3] - The company has secured significant long-term contracts with Microsoft, valued between $17.4 billion and $19.4 billion, and with Meta, up to $3 billion, with revenue contributions anticipated to begin in Q4 2025 [4][9] - Nebius is expanding its global data center footprint, planning to enhance existing facilities in the U.K., Israel, and New Jersey, while targeting $7–$9 billion in annual recurring revenue (ARR) by 2026 [6][9] - The company has raised its capital expenditure outlook from approximately $2 billion to about $5 billion for 2025, which increases execution risk if revenue growth does not align with capital-intensive strategies [7] Group 2: Amazon.com, Inc. (AMZN) - Amazon continues to lead in e-commerce and cloud computing, with innovations like AI-powered shopping assistants enhancing customer engagement and driving sales [10] - AWS remains a key growth driver, offering extensive infrastructure and AI-focused services that simplify the deployment of AI models, reinforcing Amazon's leadership in cloud-based AI [11][12] - Amazon's substantial investments in AI infrastructure, including custom chips and AI clusters, position the company to meet rising demand for AI workloads, although these investments also strain financial resources [13] Group 3: Comparative Analysis - Over the past month, NBIS shares have increased by 6.3%, while AMZN stock has risen by 2.8% [14] - Valuation analysis indicates that Nebius is currently overvalued, while Amazon is considered undervalued, with respective Value Scores of F and B [15] - Analysts have significantly revised earnings estimates upward for NBIS, while there has been a marginal downward revision for AMZN [20][21] - In terms of Zacks Rank, NBIS holds a Rank 3 (Hold), whereas AMZN has a Rank 2 (Buy), suggesting that AMZN may be a more favorable investment at this time [21]

Core Insights - Nebius Group N.V. (NBIS) stock has increased by 29.9% in the past month and 97% over the last six months, outperforming the Zacks Computer & Technology sector and the S&P 500 composite [2][8] - The company is aggressively expanding its infrastructure to meet the high demand for AI capabilities, raising its contracted power target to 2.5 gigawatts by 2026 [5][12] Company Performance - NBIS has outperformed major peers such as Microsoft Corporation (MSFT), which fell by 0.9%, while Amazon.com, Inc. (AMZN) and CoreWeave, Inc. (CRWV) increased by 20.9% and 9%, respectively [3] - The company has secured multibillion-dollar contracts with Microsoft, valued between $17.4 billion and $19.4 billion, and with Meta, up to $3 billion, expected to contribute significantly to revenue starting late in Q4 2025 [6][8] Infrastructure Expansion - Nebius is launching new cloud platforms, including Aether 3.0 and Nebius AI Cloud 3.1, designed to enhance AI capabilities and enterprise security [9][10] - The company is also expanding its global data center footprint, with new facilities planned in the U.K., Israel, and New Jersey, targeting $7–$9 billion in annual recurring revenue (ARR) by 2026 [11][12] Financial Outlook - Nebius has raised its capital expenditure outlook from approximately $2 billion to about $5 billion for 2025, indicating a significant investment in growth [13] - The company is projected to generate between $900 million and $1.1 billion in ARR by the end of 2025 [12] Valuation Metrics - NBIS shares are currently trading at a Price/Book ratio of 5.52X, which is higher than the Internet Software Services industry's average of 3.99X [15]

Core Insights - AI infrastructure spending is projected to exceed $758 billion by 2029, creating significant investment opportunities in the sector [2] - Nebius Group N.V. (NBIS) and Microsoft Corporation (MSFT) represent two distinct investment approaches in AI infrastructure, with Nebius as a fast-growing pure play and Microsoft as a dominant technology giant [1][2] Group 1: Nebius Group N.V. (NBIS) - Nebius is operating in a supply-constrained AI infrastructure market, with demand for GPU capacity significantly outpacing available resources [3] - The company has raised its contracted power target to 2.5 gigawatts by 2026, up from an earlier goal of 1 gigawatt, and expects to have between 800 megawatts and 1 gigawatt of capacity operational by the end of next year [3][5] - Nebius secured major contracts, including a five-year, $3 billion agreement with Meta and a deal with Microsoft valued between $17.4 billion and $19.4 billion [4] - The company aims for $7–$9 billion in annual recurring revenue by 2026 and plans to expand data-center operations in the U.K., Israel, and New Jersey, while also establishing new facilities in the U.S. and Europe [5] - Nebius has tightened its full-year revenue guidance to $500–$550 million, with adjusted EBITDA expected to turn slightly positive by year-end 2025 [7] - The company faces challenges such as rising operating costs, increased capital expenditure guidance from $2 billion-$5 billion, and execution risks associated with rapid expansion [6][7] Group 2: Microsoft Corporation (MSFT) - Microsoft has integrated AI capabilities across its product ecosystem, enhancing its competitive position in enterprise AI adoption [10] - The company plans to increase total AI capacity by over 80% this year and nearly double its overall data center footprint in the next two years [11] - Microsoft announced $23 billion in new AI investments, including a $17.5 billion commitment in India, emphasizing its focus on expanding cloud infrastructure [12] - For the second quarter of fiscal 2026, Microsoft expects revenues between $79.5 billion and $80.6 billion, reflecting a growth of 14% to 16% [13] - Microsoft is contending with competition from AWS and Google Cloud, as well as rising capital expenditure requirements for AI infrastructure [14] Group 3: Valuation and Performance - Nebius shares have decreased by 15%, while Microsoft stock has seen a slight increase of 0.1% over the past month [15] - Valuation metrics indicate that Microsoft appears undervalued with a VGM Score of B, while Nebius is considered overvalued with a Value Score of F [17] - In terms of Price/Book ratio, NBIS is trading at 4.46X compared to MSFT's 9.98X [18] - Analysts have revised earnings estimates downward for Nebius, while there has been a marginal upward revision for Microsoft [20][21] - Currently, Nebius holds a Zacks Rank 4 (Sell), while Microsoft has a Zacks Rank 3 (Hold), suggesting that Microsoft may be a better investment choice at this time [22]

Core Insights - The AI infrastructure market is projected to grow from $60.23 billion in 2025 to $499.33 billion by 2034, with a CAGR of 26.6% [2] - Companies like CoreWeave (CRWV) and Nebius Group N.V. (NBIS) are positioned as key players in the AI infrastructure space, focusing on GPU-based cloud services [1][3] CoreWeave (CRWV) - CRWV has experienced a 134% year-over-year revenue increase in Q3, driven by strong demand for its AI cloud platform and a robust backlog of $55.6 billion [5][7] - The company has secured significant contracts, including a multi-year deal with Meta worth up to $14.2 billion and an expanded partnership with OpenAI totaling approximately $22.4 billion [9] - Despite supply chain challenges affecting revenue guidance, CRWV remains confident in its operational agility and ability to scale infrastructure [4][10] Nebius Group N.V. (NBIS) - NBIS has raised its capital expenditure (CapEx) guidance to around $5 billion to expand its power capacity, but has faced delays that have lowered its 2025 revenue outlook to $500–$550 million [7][12][13] - The company has secured major contracts with Meta and Microsoft, valued between $3 billion and $19.4 billion, enhancing its revenue visibility [15] - NBIS is focused on expanding its data center capacity and enhancing its enterprise portfolio, with ambitious annual recurring revenue (ARR) goals of $900 million–$1.1 billion by the end of 2025 [13][15] Market Performance - In the past month, CRWV's stock has declined by 0.9%, while NBIS has seen a more significant drop of 12.6% [17] - Valuation metrics indicate that NBIS may be overvalued with a Price/Book ratio of 4.59X compared to CRWV's 9.63X, suggesting CRWV may be a more attractive investment option [18] Investment Outlook - Both companies are experiencing rapid growth, but CRWV currently leads in revenue generation and customer backlog, while NBIS is in a phase of aggressive expansion [22] - CRWV is viewed as a better investment option based on its stronger market position and growth potential, reflected in its Zacks Rank of 3 (Hold) compared to NBIS's 4 (Sell) [23]

Core Insights - Nebius Group N.V. (NBIS) stock has increased by 73.8% over the past six months, significantly outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry, which grew by 22.7% and 2.1% respectively [1][7] - The company is facing challenges such as macroeconomic uncertainty, rising operating costs, and substantial capital expenditures, with a notable increase in sales, general, and administrative expenses by 87% year over year in Q3 2025 [3][4] - Nebius has tightened its full-year revenue guidance to $500–$550 million, anticipating results near the midpoint due to delays in capacity expansion [5] Company Challenges - The company is experiencing elevated capital expenditure levels, increasing its guidance from around $2 billion to approximately $5 billion for full-year 2025, which poses a risk if revenue growth does not keep pace [3][4] - Execution risks are present as Nebius scales aggressively with multiple data centers, and while adjusted EBITDA is expected to turn slightly positive by year-end 2025, it will remain negative for the full year [5][16] - Nebius faces stiff competition from major players like Microsoft, Amazon, and CoreWeave, with Microsoft’s capital spending raising concerns about return on investment [8][9] Company Valuation - Nebius appears overvalued with a Value Score of F, and its shares are trading at a Price/Book ratio of 4.59X, higher than the industry average of 3.84X [10][11] Company Tailwinds - Nebius operates in a supply-constrained AI infrastructure market, targeting 2.5 gigawatts of contracted power by 2026, up from an earlier projection of 1 gigawatt [12] - The company has secured significant hyperscale agreements, including a $3 billion contract with Meta and a $17.4–$19.4 billion deal with Microsoft, indicating strong demand visibility [13] - Nebius plans to expand its data centers in the UK, Israel, and New Jersey, aiming for $7–$9 billion in annual recurring revenue (ARR) by 2026, with a target of $900 million-$1.1 billion in ARR by the end of 2025 [15] Investment Considerations - Despite long-term growth potential from large contracts and rapid expansion, near-term risks such as stretched valuation, execution challenges, and rising costs may impact performance [16] - Existing investors may consider exiting positions to mitigate potential downside, while prospective investors might remain cautious [17]

Core Insights - The AI revolution is shifting investment focus towards infrastructure rather than applications, with compute capacity, GPU clusters, and hyperscale cloud platforms being critical for AI growth [1][2] - Nebius Group N.V. (NBIS) and Alphabet Inc. (GOOGL) are two companies attracting investor interest for different reasons, with Nebius focusing on AI-first infrastructure and Alphabet leveraging its scale and proprietary technology [1][2] Nebius Group N.V. (NBIS) - Nebius operates in a supply-constrained AI infrastructure market, with demand for GPU capacity significantly exceeding available resources [3] - The company aims to expand its infrastructure to 2.5 gigawatts of contracted power by 2026, up from an earlier projection of 1 gigawatt, with major contracts secured from Meta ($3 billion) and Microsoft ($17.4–$19.4 billion) [3][4] - Nebius is launching new enterprise offerings, including the Aether 3.0 cloud platform and Nebius Token Factory, and plans to expand data centers in the U.K., Israel, New Jersey, and new sites in the U.S. and Europe [4] - The company targets $7–$9 billion in annual recurring revenue (ARR) for 2026, with expectations of $900 million to $1.1 billion by the end of 2025 [4] - However, Nebius faces macroeconomic challenges, rising operating costs, and increased capital expenditure projections from $2 billion to $5 billion for 2025, which could impact revenue growth [5][6] Alphabet Inc. (GOOGL) - Alphabet has established itself as a leading AI infrastructure provider, focusing on custom hardware and cloud-scale data centers, with Google Cloud revenues increasing by 33.5% year over year in Q3 2025 [7][8] - The company is expanding its cloud footprint through strategic partnerships, including collaboration with NVIDIA, and is introducing advanced AI technologies like Gemini and new GPU offerings [9][10] - Alphabet's initiatives in Generative AI and enhancements in search capabilities are expected to drive advertising revenue growth [10][11] - Despite strong growth, Alphabet's capital expenditures are projected to rise significantly, with estimates for 2025 between $91 billion and $93 billion, raising concerns about margin strain [12] Price Performance and Valuation - Over the past month, NBIS shares have decreased by 24.3%, while GOOGL stock has increased by 16.6% [13] - Valuation analysis indicates that Alphabet appears undervalued with a Value Score of B, whereas Nebius is considered overvalued with a Value Score of F [14] - In terms of Price/Sales ratio, NBIS is trading at 65.15 compared to GOOGL's 10.13, indicating a significant disparity in valuation metrics [15] Earnings Estimates - Analysts have revised earnings estimates downward for NBIS, while GOOGL has seen significant upward revisions [16][19] - Current earnings estimates for NBIS show a downward trend, with substantial negative revisions over the past 60 days [19] Investment Ranking - Currently, NBIS holds a Zacks Rank of 4 (Sell), while GOOGL has a Zacks Rank of 3 (Hold), suggesting that GOOGL may be a more favorable investment option at this time [20]

Core Insights - Nebius Group N.V. (NBIS) experienced a significant decline in share price following its third-quarter 2025 results, with shares down 20.4% since the earnings report on November 7, 2025 [1][8] - The company's stock has dropped approximately 30% over the past month, underperforming the Zacks Internet Software Services industry's decline of 8.8% [2] Financial Performance - In Q3 2025, Nebius reported an adjusted net loss of $100.4 million, which is 153% wider than the loss of $39.7 million from the previous year [4] - Revenues surged 355% year over year to $146.1 million, with the core infrastructure segment growing 400% [4] - Adjusted EBITDA loss was $5.2 million, an improvement from the $45.9 million loss in the prior-year quarter [5] - Total operating costs increased by 145% to $276.3 million, with a net loss from operations of $119.6 million compared to a loss of $43.6 million a year ago [5] Operational Challenges - Nebius faces macroeconomic uncertainties, rising expenses, and heavy capital spending, with capital expenditure guidance raised from approximately $2 billion to around $5 billion for 2025 [6][8] - Structural operational challenges include difficulties in securing sufficient power and ongoing supply-chain constraints, which limit the company's ability to serve customers effectively [9] - The company has tightened its full-year revenue outlook to a range of $500 million to $550 million, down from previous guidance of $450 million to $630 million [10] Competitive Landscape - Nebius is competing with major players like Microsoft, Amazon, and CoreWeave, which are rapidly expanding their AI infrastructure [11][12][13] - The company is consistently "sold out" of capacity, risking lost business and delayed onboarding until new capacity comes online in late 2025 and 2026 [9] Long-Term Growth Potential - Despite near-term challenges, Nebius is committed to strengthening its core AI cloud business, with significant multi-billion-dollar agreements with Microsoft and Meta expected to contribute to revenue starting late in the current quarter [19] - The company plans to scale its data centers in various regions and aims for 2.5 GW of contracted power by 2026 [20] - Nebius is also enhancing its enterprise portfolio with new offerings, targeting an annual run-rate revenue of $900 million to $1.1 billion by the end of 2025 [21]

Core Insights - Nebius Group N.V. (NBIS) aims to achieve an annualized run rate (ARR) of $7–$9 billion by the end of 2026, with a target of $900 million to $1.1 billion by the end of 2025 [1][2] - The company is strengthening its core AI cloud business through partnerships with AI-native startups and major technology players like Microsoft and Meta, with expected revenue contributions ramping up through 2026 [2][4] Business Expansion - Nebius plans to expand its data centers in the U.K., Israel, and New Jersey, while launching new facilities in the U.S. and Europe in the first half of 2026, targeting 2.5 gigawatts of contracted power by 2026, up from 1 gigawatt [3] - The company is enhancing its enterprise offerings with the launch of the Aether 3.0 cloud platform and Nebius Token Factory, positioning itself as a leader in the global AI cloud market [4] Financial Outlook - Nebius has raised its capital expenditure guidance for 2025 from approximately $2 billion to around $5 billion, which may impact growth if revenue does not keep pace [5] - The company has tightened its full-year revenue outlook to a range of $500 million to $550 million, down from previous guidance [6] Competitive Landscape - Microsoft is significantly increasing its AI capacity and expanding its data center footprint, with expectations of total revenues between $79.5 billion and $80.6 billion for the second quarter of fiscal 2026, indicating a growth of 14% to 16% [7] - CoreWeave, Inc. is also expanding its role in the AI cloud market, securing major deals and partnerships, including a multi-year deal with Meta worth up to $14.2 billion [8][9] Market Performance - Shares of Nebius have gained 147.6% in the past six months, outperforming the Internet – Software and Services industry's growth of 9% [11] - The current price/book ratio for NBIS is 5.53X, higher than the industry's 4.26X [12]