Nebius stock surges 81% YTD, but faces competition and is unprofitable

by MarketNewsData
  1. Nebius Group N.V. (NBIS) shares have surged 81.4% year to date, outperforming the Computer & Technology sector and Zacks Internet Software Services industry. The S&P 500 Composite is up 6.2% over the same period.
  2. Despite strong growth, NBIS remains unprofitable with negative adjusted EBITDA for 2025. Capital expenditure forecast for 2025 is raised to $2 billion. Analysts have revised earnings estimates downward.
  3. Nebius faces intense competition in the AI cloud infrastructure space from giants like Amazon and Microsoft. With a stretched valuation and execution risks, investors may consider offloading NBIS for now.
  4. Presently, NBIS has a Zacks Rank #4 (Sell). Investors can access Zacks’ portfolio services for $1 to explore more stock picks and recommendations.
  5. Amazon.com, Inc. (AMZN) and Microsoft Corporation (MSFT) are among the competitors in the AI infrastructure space. CoreWeave Inc. (CRWV) has seen a substantial 313% surge since its trading debut.

Read more at Nasdaq: Nebius Surges 81% YTD: How Should Investors Play NBIS Stock?

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