Nebius: Why It Post-Earnings Momentum Has Staying Power

A.J. Button 13.02K Followers Follow Summary NBIS's most recent earnings release was a beat, boasting 454% revenue growth and positive operating cash flows. The company has multi-billion dollar contracts with Meta and Microsoft in the pipeline, which suggest that the growth will continue into the future. Valuation remains stretched at 53x sales and 7.4x book, but NBIS's growth trajectory and market positioning justify a bullish stance. Issues to monitor include persistent negative free cash flow, rising debt, and potential equity dilution amid aggressive capital investment. In this article, I explain why I find NBIS to be a decent buy at today's price. Nebius is a data center company Erik Isakson/DigitalVision via Getty Images Nebius ( NBIS ) released its second quarter earnings this Wednesday, handily beating analyst estimates on both revenue and earnings per share [EPS]. While the company remained unprofitable on a bottom-line basis This article was written by A.J. Button 13.02K Followers Follow Financial journalist. Passed CFA Level 1. Seeking value and dividend growth opportunities, and sharing what I find on Seeking Alpha. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.