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[Generated Title]: Nebius Group: Millionaire Maker or Just Another Overhyped AI Bubble?
So, Nebius Group... up 350% this year, huh? Give me a break. Every other company is slapping "AI" on their name and suddenly they're the next Nvidia. This Dutch outfit—Nebius Group N.V. (NBIS)—is apparently the real deal, though, raking in billions from Meta and Microsoft. Or so they say.
Citizens Jmp started covering Nebius and slapped a $175 price target on it. CICC Research is also on the bandwagon, setting an "outperform" rating and a $143 price target. Everyone's so bullish. But are they really looking at the numbers, or just chasing the AI hype train?
The Hype is Real, But So Are the Risks
Okay, fine, the numbers are impressive. Third-quarter revenue jumped 355% to $146 million. And they're selling out all their data center capacity as fast as they can build it. Meta and Microsoft are throwing money at them... but let's be real, aren't those guys throwing money at everything AI-related right now? It’s like the dot-com boom all over again, except this time it's GPUs instead of Pets.com.
Then again, maybe I'm just being cynical.
Nebius expects to end 2025 with 220 MW of connected data center power capacity, almost 10 times what they had at the end of 2024. By the end of 2026, they're shooting for 800 MW to 1 GW. That's... ambitious. What if the AI bubble bursts before they can get all that capacity online? What if some new, better technology comes along and makes their data centers obsolete?
The article I read over at Seeking Alpha says Nebius is trading at a whopping 54 times sales. 54 TIMES! That's insane. They say the growth rate and order backlog justify it, but I’ve heard that song and dance before. Remember Iren? Remember AMD? Everyone was screaming "buy, buy, buy!" and then... well, you know the story.
Cramer's Take: "Too Speculative"
Even Cramer—Cramer—called Nebius "too speculative." And that’s saying something. The dude practically lives for hype. If he's pumping the brakes, maybe everyone else should too. Cramer’s Lightning Round: Nebius is ‘too speculative’
Offcourse, there’s also the question of competition. CoreWeave is out there doing the same thing, and let's not forget about Amazon, Google, and all the other tech giants who are building their own AI infrastructure. Can Nebius really compete with those guys in the long run? I mean, they've got some big contracts now, but what happens when those contracts expire?
And here's another thing that bugs me: the stock dropped 11% on Thursday. Volume was up 130% from the average. What caused that? Did some big investor bail? Did someone finally realize that the emperor has no clothes? Details are pretty scarce on that...
I just remembered, I still need to call the cable company. They’re raising my rates again. For what? So I can watch more AI-powered cat videos? This whole thing is just… ugh.
So, Millionaire Maker or Bust?
Can investing $10,000 in Nebius stock make you a millionaire? Maybe. If everything goes perfectly, and the AI boom continues, and Nebius can actually deliver on all its promises, and the stock doesn't crash in the meantime... then yeah, maybe.
But let’s be real, the odds are stacked against you. Could Investing $10,000 in Nebius Stock Make You a Millionaire?
It's a Casino, Not an Investment
Look, if you wanna gamble a little on nebius stock, go ahead. But don't kid yourself into thinking it's a sure thing. This whole AI thing is a wild west, and Nebius is just one small player in a very, very crowded game.