From Nasdaq: 2025-06-05 08:50:00

Nebius Group N.V. (NBIS) shares have surged by 57.3% in the past month, outperforming the Computer & Technology sector and the Internet Software Services industry. Despite this growth, the stock is still trading 22.6% below its 52-week high, closing at $39.39. Investors may be considering whether to take profits or hold on.

Nebius reported a 385% year-over-year revenue growth in Q1 of 2025, with an ARR of $310 million for April. The company remains confident in achieving its full-year ARR guidance of $750 million to $1 billion and overall revenue guidance of $500 million to $700 million for 2025.

Nebius is focusing on AI cloud differentiation to capture a larger share of the market. The company has made technical enhancements to increase reliability and reduce downtime, resulting in a 5% improvement in node availability. Nebius is also investing in object storage capabilities to improve access to big data sets for faster results.

Nebius is strengthening ties with NVIDIA, becoming one of the first AI cloud infrastructure platforms to offer the NVIDIA Blackwell Ultra AI Factory Platform. The company will also support the DGX Cloud Lepton marketplace, providing significant channel expansion opportunities.

Nebius is expanding its global infrastructure, adding new regions to reduce latency and meet global customer requirements. The company offers a diverse range of services beyond its core cloud platform, including AI development, edtech, and autonomous vehicle platforms. However, profitability issues and intense competition from industry giants like Amazon and Microsoft remain challenges.

Analysts have revised earnings estimates downward for NBIS, with a Zacks Value Score of F and a Price/Book ratio of 2.94X. The company has raised its 2025 capital expenditure forecast to $2 billion, which could be concerning if revenue growth does not match this high capital intensity.

In conclusion, while Nebius shows strong revenue growth and strategic partnerships, it remains unprofitable with negative adjusted EBITDA projected for 2025. Rising capital expenditures and competition from cloud giants are concerns. Currently rated a Zacks Rank #3 (Hold), investors may want to monitor the stock’s performance.



Read more at Nasdaq: Nebius Stock Soars 57% in a Month: Time to Hold or Book Profits?