NBIS - Nebius Group

Nebius fell to lows of ~$226 despite strong presentations showing demand and pricing higher than last quarter. Host notes it trades at ~40x price-to-sales — not cheap — and the selloff seems undeserved from a neocloud perspective.

Host presents Nebius as a top AI infrastructure play with surging demand through 2028, 454% revenue growth, 495% Rule of 40, pricing power, Palantir/Shopify partnerships, global data center expansion, and fast payback periods on debt-funded capacity. He states he is very excited and expects Nebius to do very well and take market share.

Host excited about Nebius partnership with Palantir, seeing it as major validation and long-term growth opportunity. Willing to hold long-term if performance continues.

Neocloud growing 500%+ YoY, 77% gross margins, adjusted EBITDA margin at 41% and improving, strong cash position relative to debt, capacity auction shows pricing power, asset-light model adds new revenue streams.

Calls it 'absolutely great name,' notes it's moving (up ~4.4% to ~$219) and getting better every quarter; revenue still small but improving. Favorite small neocloud discussion.

Named in the chapter 'CRWV, NBIS, NVDA & NU' (AI cloud coverage), but details fall in the truncated portion.

Nebius trades at 53x sales with negative free cash flow and negligible net income. The host sees no way to justify the valuation and quickly moves on, calling it too speculative at the current price.

Nebius is a pure-play AI infrastructure beneficiary; ARR/demand look amazing and it's 'killing it,' but Brad hasn't done enough work on long-term profitability after depreciation.

The host trimmed his Nvidia position to buy Nebius, expressing confidence in its AI cloud growth and potential.

Not necessarily a catch-up trade; the host notes it is more expensive and has different strategies, but is not CoreWeave's equal.