Nebius: Surging Spot Prices Has Me Bullish For Next Year

Andres Veurink 2.26K Followers Follow Summary Nebius (NBIS) remains a Strong Buy as it executes on rapid backlog growth, robust GPU rental pricing, and secured capital for expansion. NBIS’s unit economics are improving, with GPU price hikes passed through to contracts, shielding margins and supporting 50% adjusted EBITDA margins in Q2. Deferred and contracted revenues are surging, with a $40 billion backlog and guidance for at least 1GW annual capacity additions through 2027. Despite high CapEx guidance, NBIS trades at an 11.6x forward EV/EBITDA, below sector averages, with demand and spot pricing supporting bullish long-term revenue targets. onurdongel/iStock via Getty Images Investment Thesis I’m no stranger to covering Nebius ( NBIS ) as this will be the fourth time. The company has done wonders for my portfolio since last December as the shares have surged on the back This article was written by Andres Veurink 2.26K Followers Follow With over a decade of institutional investment experience, I specialize in identifying growth opportunities at the intersection of technological disruption and macro-thematic energy shifts. I've spent the majority of that time at a hedge fund here in Rotterdam, working my way up as an analyst. My work reflects rigorous standards as I myself have a very high standard as to what I invest my money in. My primary coverage spans the technology sector—with a focus on SaaS and cloud infrastructure—and the energy and minerals markets. I tend to be very data and trend driven in my work, analyzing unit economics and supply chain gaps among a number of other often overlooked areas in business and industries.I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughts and research is done only by myself. 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.