Diversification Strategy Sparks Bullish Impetus in Nebius Group Stock (NBIS)

From Yahoo Finance: 2025-05-31 15:25:00

Investor raises Nebius Group (NBIS) price target to $60, anticipating over 50% upside. Company reports exceptional Q1 FY2025 revenue of $55.3 million, a 385% YoY increase. Management projects ARR between $750 million and $1 billion by year-end. Nebius’s diversified approach includes ventures in AI, mobility, data-labeling, and edtech.

Nebius demonstrates improving cost efficiency, reducing adjusted EBITDA loss. Operating expenses decline from 827% of revenue to 334%. Cloud-based model allows for scalability and margin expansion. Management targets adjusted EBITDA profitability in second half of FY2025. Valuation at approximately 50x EV/Sales may seem expensive but aligns with peers in AI infrastructure space.

Nebius stock shows extreme bullishness with high volatility typical in rapidly growing stocks. Valuation comparable to industry peers like Databricks and CoreWeave. Wall Street consensus rates Nebius as Strong Buy with a $52.33 price target, offering 37% upside. Investor bullish on Nebius’s growth potential and execution capabilities, maintaining $60 price target.



Read more at Yahoo Finance: Diversification Strategy Sparks Bullish Impetus in Nebius Group Stock (NBIS)