Nebius Group N.V. (NBIS) will report second-quarter 2025 results on Aug. 7. The Zacks Consensus Estimate predicts a loss of 42 cents per share with total revenues estimated at $95.05 million. Nebius is an AI infrastructure company focusing on AI and ML workloads in data centers.

NBIS’ Earnings ESP is 0.00% with a Zacks Rank #4 (Sell). Accelerating demand for AI infrastructure services is expected to boost second-quarter performance. Nebius aims to expand data center footprint and GPU deployments, enhancing its cloud platform capabilities. However, competition and profitability concerns persist in the industry.

Despite revenue growth, NBIS remains unprofitable, expecting negative adjusted EBITDA for 2025. Capital expenditure forecast has increased to $2 billion. Deconsolidating Toloka due to ownership changes will impact reported financials. Analysts have revised earnings estimates downward. Stock performance has outperformed peers but has a stretched valuation.

With risks like competition and profitability issues, investors may consider selling NBIS before second-quarter results. Uncertainty from Toloka deconsolidation adds to caution. Long-term investors should wait for a better entry point. NBIS stock, though showing growth, has a stretched valuation, indicating more risk than opportunity.

Read more at Nasdaq: NBIS Q2 Earnings Coming Up: How Should You Play the Stock?