Nebius Group NV (NBIS, Financial) experienced a slight increase in its stock price, rising by 13 cents, equivalent to a 0.33% gain, to approximately $39.95. The options market activity for NBIS was relatively low, with a total of 17,000 contracts traded. Notably, call options dominated, resulting in a put/call ratio of 0.24, which is below the typical level of about 0.29.
The implied volatility for the stock, referred to as IV30, decreased by 3.95 to around 83.24, positioning it in the bottom 10% of all observations over the past year. This lower volatility indicates an expected daily stock movement of approximately $2.09. Additionally, the flattening of the put-call skew suggests a mildly optimistic market sentiment towards NBIS.
NBIS Key Business Developments
Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nebius Group NV (NBIS, Financial) reported a nearly 400% year-over-year revenue growth and a 700% increase in annualized run rate revenue, indicating strong demand for AI compute.
- The company ended the quarter with a solid cash balance of $1.4 billion, allowing continued investment in infrastructure.
- Nebius Group NV (NBIS) expanded its global footprint by adding three new locations, enhancing its capacity to serve customers worldwide.
- The company announced new partnerships with Nvidia and Metalamma, strengthening its AI cloud offering.
- Nebius Group NV (NBIS) received industry recognition, being ranked in the golden tier of the GPU cloud cluster marks rating system by semi-analysis.
Negative Points
- Despite strong revenue growth, Nebius Group NV (NBIS) expects adjusted EBITDA to be negative for the full year, with plans to turn positive in the second half of 2025.
- The company increased its CapEx guidance to approximately $2 billion for 2025, up from the previous $1.5 billion, due to delayed spending and additional investments.
- Nebius Group NV (NBIS) faces challenges in maintaining profitability, with medium-term EBITDA margins expected to range between 20% to 30%.
- The company is heavily reliant on its partnerships and external funding sources, which could pose risks if these relationships change.
- Nebius Group NV (NBIS) is in active discussions with potential strategic partners for its autonomous vehicle platform, indicating a need for additional capital and support to drive growth.
