Since my last coverage on Nebius Group ( NBIS ) , the stock has pulled back roughly 16%, offering investors a chance to accumulate shares near the recent $21 private placement price secured by institutional backers like Nvidia (Yiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, ...

Core Insights - Nebius (NBIS) is a full-stack AI neocloud that is making significant advancements in the GPU infrastructure sector, with its platform and software fully optimized for machine learning workloads, distinguishing itself from major hyperscalers [1] Group 1: Company Overview - Nebius focuses on providing a comprehensive AI cloud solution, specifically tailored for machine learning applications, which sets it apart from traditional cloud service providers [1] Group 2: Industry Context - The company’s approach contrasts sharply with that of the largest hyperscalers, indicating a niche market strategy that may appeal to specific segments of the AI and machine learning industry [1]

Core Insights - Nebius Group N.V. (NASDAQ: NBIS) has experienced significant volatility, with its stock initially surpassing $50 per share before declining over 58% [1] Group 1: Company Performance - The stock of Nebius Group N.V. has shown a dramatic decline after reaching a peak, indicating potential instability in its market performance [1] Group 2: Analyst Perspective - Daniel Sereda, a chief investment analyst, emphasizes the importance of filtering vast amounts of data to identify critical investment ideas, reflecting the challenges faced by investors in the current market [1]

Core Insights - A company has resumed trading on NASDAQ after a 2-year hiatus, generating quarterly revenue of $38 million while holding $2.5 billion in cash [1] Company Overview - The company recently returned to the NASDAQ, indicating a potential recovery or strategic repositioning after a significant absence [1] - The substantial cash reserves of $2.5 billion suggest strong liquidity and potential for future investments or acquisitions [1] Financial Performance - The company reported quarterly revenue of $38 million, which may indicate a stable revenue stream despite the previous trading suspension [1]

Core Viewpoint - Nebius Group N.V. (NBIS) has experienced a significant decline in its stock price, dropping 24.6% over the past month, which is a stark contrast to the minor declines in the broader market indices [1][3]. Group 1: Reasons for Underperformance - The primary reason for Nebius Group's underperformance is the divestment of its stake in Yandex at a heavily discounted price of RUB 475 billion ($5.2 billion), which is 50% below the fair market value of the assets [3]. - Following the divestment, Nebius Group lost several high-margin businesses, including Search, Advertising, Mobility, E-commerce, Food Delivery, and Cloud Services, retaining only its international AI and cloud-focused division [4]. - The company's net loss increased to $136.6 million in Q4 2024, up from a loss of $94.2 million in Q3 2024, indicating ongoing financial struggles [5]. Group 2: Financial Estimates and Analyst Sentiment - Analysts have adjusted their bottom-line estimates for Nebius Group, widening the expected loss for 2025 by 20 cents to $1 per share, reflecting a pessimistic outlook [6]. - Current estimates for the upcoming quarters indicate a loss of $0.39 for Q4 2024 and $0.41 for Q1 2025, with the full-year loss for 2024 projected at $1.10 [7]. Group 3: Operational Challenges - Nebius Group faces operational challenges due to the extended lead times for customer deals, which require prolonged proof-of-concept testing and complex contract negotiations [8]. - The reliance on semiconductors in the AI market exposes the company to regulatory risks, including potential U.S. tariffs on the EU, which could disrupt supply chains and increase costs [9]. Group 4: Competitive Landscape - Nebius Group competes with established cloud service providers like Amazon, Microsoft, and Alphabet, which have more robust financial resources and established AI-centric cloud platforms [10][13]. - Unlike Nebius Group, these competitors have developed their own hardware solutions, such as Alphabet's Tensor Processing Units, giving them a competitive edge in AI and machine learning services [12]. Group 5: Technical Indicators - Technical indicators for Nebius Group suggest a bearish trend, with the stock trading below the 50-day moving average, indicating potential further downside [14]. Group 6: Conclusion - Given the operational and competitive pressures, along with weak financials, it is suggested that investors should avoid Nebius Group stock at this time [16].

Group 1: Nvidia - Nvidia's stock has decreased over 12% year to date despite strong earnings and product innovations, leading to a forward P/E ratio of 26, which is lower than peers like Apple and Microsoft [2][4] - Over the past year, Nvidia's diluted EPS has increased by 72%, with revenue up over 340% and earnings up over 680% over the last three years, although future growth is expected to slow [4][5] - Nvidia maintains a strong balance sheet with more cash and marketable securities than long-term debt, allowing for continued investment in R&D even during downturns [7] Group 2: Vertiv Holdings - Vertiv's shares have dropped 22% year to date due to a market sell-off in AI stocks and disappointing near-term news regarding European orders [8][9] - Despite flat orders year over year in Q4, full-year orders rose by 30%, and management forecasts a 16% organic revenue growth and a 25% increase in adjusted operating profit for 2025 [10][11] - Vertiv is currently trading at 17.7 times Wall Street estimates for free cash flow in 2026, which is considered cheap for a stock with double-digit revenue growth prospects [11] Group 3: Nebius Group - Nebius is an AI infrastructure company that is less recognized than Nvidia but is expected to grow as the industry expands, providing indirect exposure to Nvidia [12][15] - The AI infrastructure segment accounts for over 50% of Nebius's revenue, with plans to launch its first Nvidia GPU cluster in the U.S. and deploy over 22,000 Blackwell GPUs in 2025 [13][14] - Nebius reported sales of $117.5 million, with a projected annualized run rate of $750 million to $1 billion by December 2025, although the company is currently incurring losses [14][15]

Core Insights - Nebius Group's stock has experienced a significant decline of 21% over the past month despite positive developments within the company [1] Company Developments - The article highlights that there have been numerous positive developments for Nebius Group during the period since the last earnings report [1]

Core Viewpoint - Nvidia-backed Nebius Group is being considered for investment due to its potential growth opportunities in the market [1] Company Summary - Nebius Group is associated with Nvidia, indicating a strategic partnership that may enhance its technological capabilities and market position [1] - The stock price of Nebius Group was noted to have decreased by 5.22% on March 17, 2025, suggesting recent market volatility [1] Investment Consideration - The video discusses the rationale behind opening a position in Nebius Group, highlighting potential investment opportunities [1] - The publication date of the video is March 18, 2025, indicating the timeliness of the investment discussion [1]

Core Insights - SoundHound AI experienced a significant stock increase of 836% in 2024, largely due to its connection with Nvidia [2] - Nvidia's investment in SoundHound AI was originally made years ago when the company was still private, and the size of the investment was not substantial for Nvidia [3] - Nvidia exited its entire position in SoundHound AI in Q4 2024, indicating a shift in focus [4] Nebius Group - Nebius Group, a Dutch data center operation, was spun off from Yandex and has received investment from Nvidia [5] - Nebius specializes in AI chipware architecture for data centers and is equipping facilities in multiple locations with Nvidia's Blackwell GPU chipsets [5][6] - The rising investment in AI infrastructure positions Nebius favorably for expansion in Europe and the U.S. [6] CoreWeave Comparison - CoreWeave generated $1.9 billion in revenue in 2024, a 736% increase from 2023, but has a high customer concentration risk with over 75% of revenue from two customers [8] - CoreWeave is seeking a valuation of approximately $35 billion for its IPO, which would result in a price-to-sales ratio of about 17.5 [9] - The success of CoreWeave's IPO could positively impact Nebius as investors may seek similar under-the-radar companies [11] Market Dynamics - The market is currently favoring companies connected to AI, particularly those involved in AI infrastructure and GPU development [10] - Nebius is expected to provide strategic value to Nvidia, potentially leading to a closer relationship as demand for AI infrastructure rises [12]

Core Viewpoint - Nebius (NASDAQ: NBIS) is positioned for significant near-term growth, bolstered by a strong cash position resulting from major asset divestitures and recent funding, following its separation from Russia due to the Ukraine invasion [1] Company Summary - Nebius has a notably large cash position, which enhances its growth potential in the near term [1] - The company has successfully decoupled from Russia, a strategic move following geopolitical tensions [1] Analyst Profile - Oliver Rodzianko is an investment analyst with a focus on the technology sector, emphasizing value principles and resilient management [1] - His expertise includes AI, semiconductors, software, and renewable energy, targeting companies with lasting competitive advantages [1] - Rodzianko's investment strategy involves value trading at inflection points, typically holding investments for one to two years [1] Investment Strategy - Rodzianko anticipates an annual return of 30% or above for strong buy recommendations in value trading, and 20% or above for long-term investments [1] - For buy recommendations, expected annual returns are 22.5% or above for value trading and 15% or above for long-term investments [1] - Hold recommendations expect annual returns of 15% or above for value trading and 10% or above for long-term investments [1]