Nebius Stock Is Actually Cheap

Hunting Alphas 9.12K Followers Follow Summary NBIS is signing multiyear AI-cloud contracts exceeding $1 billion on average, supported by strong demand for GPU capacity and attractive contract economics. Customer prepayments cover 50% to 60% of associated capacity capex, improving cash conversion and reducing capital payback periods. Nebius charges $7.15 per hour for B200 capacity, above the broader market benchmark, while short-duration capacity can earn materially higher revenue per megawatt of capacity. Remaining performance obligations reached $37.5B, with $13.5B expected to convert into revenue within 2 years, and management is targeting $8B of year-end ARR. NBIS trades above peers on forward revenue multiples, but its implied long-term revenue growth requirement remains well below the expected revenue projections. Mariia Vitkovska/iStock via Getty Images Performance Assessment Nebius Group ( NBIS ) has beaten the market since my last update : Elevator Pitch My bullish conviction in Nebius Group is increasing after some major recent updates associated with the GPU demand trends, pricing, and This article was written by Hunting Alphas 9.12K Followers Follow Hunting Alphas manages a long-only, zero-leverage global equity portfolio through a Self Managed Super Fund. The main portfolio managed is defensive in nature and on a risk-adjusted basis, it has outperformed the market, generating 7.5% annualized alpha, Sortino ratio of 2.0, Information Ratio of 0.67, and low max drawdowns.Hunting Alphas' articles are 5-Minute Stock Pitches that focus on the core stock drivers based on fundamentals, sentiment, valuations, and technical analysis across all types of sectors.Portfolio performance is shared monthly, portfolio holdings disclosed weekly and all the Excel models for the 5-Minute Pitches are shared on the Hunting Alphas website. Note: Hunting Alphas is related to VishValue Research on Seeking Alpha. 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.