Nebius Group: Expect Another Move-Up On Q2 Earnings

Summary

  • Despite a 67% run-up, Nebius remains undervalued by over 30%, as Wall Street's conservative estimates fail to grasp the company's explosive ARR growth.
  • The company's deep partnership with Nvidia and early access to cutting-edge GPU tech give NBIS a unique competitive advantage for attracting lucrative AI workloads.
  • The upcoming Q2 earnings report is a critical catalyst. Strong results should force analysts to revise their inexplicably low estimates, closing the valuation gap.
  • Wall Street's consensus for FY2025 sales is a staggering 12% below the company's own guidance, creating a clear opportunity for a significant upward re-rating.
  • Despite a recent run-up, NBIS remains undervalued by 30.5% vs. industry peers, with Wall Street estimates still too conservative given current growth trends.
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Introduction

If you read my Seeking Alpha article for some time, you probably know that I was very bullish on Nebius Group N.V.'s (NASDAQ:NBIS) stock price prospects since January 2025, and my bullishness paid off as the stock

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of NBIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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