Nebius: Why You Must Pick Your Spots

Quad 7 Capital Investing Group Leader Follow Summary Nebius Group N.V. was one of several stocks the author encouraged investors to wait for a pullback, and a big one hit in June-July. Q2 was strong as NBIS's adjusted EBITDA reached $236.2 million with a 41% margin, reflecting strong pricing power and high GPU fleet utilization. Despite robust operational performance, GAAP net losses persist due to aggressive capex, high depreciation, and significant share-based compensation. NBIS guidance was maintained, and power generation targets were raised, but significant execution and capital expenditure risks warrant selective entry points. This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing. Learn More » Erik Isakson/DigitalVision via Getty Images We have stayed positive on Nebius Group N.V. ( NBIS ), though in the past we have encouraged waiting for a pullback. We got that pullback in June-July, which set up a nice buying opportunity. The stock, factoring in This article was written by Quad 7 Capital 45.06K Followers Follow The Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The broader company has expertise in business, policy, economics, mathematics, game theory, & the sciences. They share both long & short trades & invest personally in equities they discuss within their investing group BAD BEAT Investing, focused on short- & medium-term investments, income generation, special-situations, & momentum trades. Rather than just give you trades, they focus on teaching investors to become proficient traders through their playbook. Their goal is to save you time by providing in depth, high-quality research, with crystal clear entry and exit targets. They have a proven track record of success.Benefits of BAD BEAT Investing include: Learning how to understand the pinball nature of markets, executing well-researched written trade ideas each week, use of 4 chat rooms, receive daily complimentary key analyst upgrade/downgrade summaries, learning basic options trading, & extensive trading tools. If you would like to learn more, click the link above! 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.