Nebius Group N.V., a specialized artificial intelligence (AI) infrastructure company, is set to report its third-quarter 2025 earnings on November 11. The company’s revenue is estimated at $150.6 million, with strong demand for AI cloud services and data center expansion driving growth. However, intense competition and high capital spending pose risks to short-term prospects.
Nebius’ core operation is an AI-powered cloud platform designed for intensive AI and machine learning workloads in both owned and colocation data center capacity. The company recently launched Nebius AI Cloud 3.0 “Aether,” a next-generation cloud platform designed for enterprise-scale AI. Despite this, analysts have significantly revised their earnings estimates downward for the bottom line over the past 60 days.
The company’s shares have risen 233.7% over the past six months, outperforming its peers in the Zacks Computer & Technology sector and the Zacks Internet Software Services industry. However, the stock is trading at a stretched valuation, with a Price/Book ratio of 6.95X, indicating more risk than opportunity.
Given these risks and limited near-term upside, investors may consider offloading Nebius’ shares ahead of the third-quarter results. Investors looking to invest should wait for a better entry point.
Source: https://www.zacks.com/stock/news/2788644/nebius-to-report-q3-earnings-how-to-approach-the-stock-now