Summary
- Nebius Group N.V. has surged over 100% since July, but this rally is not supported by improved fundamentals or profitability outlook.
- Despite a 30% increase in revenue estimates, NBIS’s EPS forecasts have declined, raising concerns about its business model and valuation.
- NBIS stock’s forward P/S ratio has soared to 51, making the current $27 billion market cap appear unjustified by near-term growth potential.
- Upgrading NBIS stock to Hold, driven by persistent AI hype, CEO-centric sentiment, and Fed rate cuts, which may sustain elevated valuations through 2025.
Dragon Claws/iStock via Getty Images
I think that the 100%+ rally of Nebius Group N.V. ([NBIS](https://seekingalpha.co…
Summary
- Nebius Group N.V. has surged over 100% since July, but this rally is not supported by improved fundamentals or profitability outlook.
- Despite a 30% increase in revenue estimates, NBIS’s EPS forecasts have declined, raising concerns about its business model and valuation.
- NBIS stock’s forward P/S ratio has soared to 51, making the current $27 billion market cap appear unjustified by near-term growth potential.
- Upgrading NBIS stock to Hold, driven by persistent AI hype, CEO-centric sentiment, and Fed rate cuts, which may sustain elevated valuations through 2025.
Dragon Claws/iStock via Getty Images
I think that the 100%+ rally of Nebius Group N.V. (NBIS) since mid-July, when I shared my bearish take, was triggered by anything but fundamentals. And it is not just me being stubborn and
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