Nebius: Think Twice Before Buying The Dip Ahead Of Q2 Earnings

Summary

  • I'm now holding Nebius but advising caution, suggesting investors wait before buying the recent 15% dip ahead of Q2 earnings.
  • Nebius has a consistent history of missing quarterly revenue estimates, posing a significant risk of spooking the many new, hype-driven investors if it happens again.
  • The stock's recent price surge was fueled more by multiple expansion and market narrative rather than fundamental beats, making its current valuation potentially stretched.
  • My recommendation is to hold existing positions but avoid adding more shares until Q2 results provide clarity on the company's top-line performance and execution.

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Intro & Thesis

I initiated my investment coverage of Nebius Group (NASDAQ:NBIS) in January of this year, calling it a "hidden AI gem at a reasonable price" at the time. I then updated my "Strong Buy" rating

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This article was written by

13.06K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

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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