Nebius Group N.V.’s stock price has surged over 100% since July, but this rally is not driven by improved fundamentals. In fact, despite a 30% increase in revenue estimates, the company’s EPS forecasts have declined. This raises concerns about its business model and valuation.
The forward P/S ratio for NBIS has soared to 51, making its $27 billion market cap seem unjustified by near-term growth potential. Analysts are now upgrading the stock to “Hold” due to persistent AI hype, CEO-centric sentiment, and Fed rate cuts, which may sustain elevated valuations through 2025.
However, investors should note that past performance is no guarantee of future results, and this upgrade does not necessarily mean a buy recommendation. It’s essential to consider these factors before making any investment decisions.
Source: https://seekingalpha.com/article/4840243-nebius-the-hype-overwhelms-sobriety-upgrade