Nebius Epitomizes What's Wrong With Extremely High-Risk Hyper-Growth Investing
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Rational Techne818 FollowersFollow5ShareSavePlay(16min)CommentsSummaryMuch of the information circulated amongst the Nebius bulls seems detached from the reality of the situation.There is no credible reason for confidence that the business will produce anything like significant profitability.Moreover, valuing the company on a price/sales basis and pointing to "explosive growth" misses the point of the underlying economics and competitive landscape.Bullish investors ought to reevaluate the significant risks here which clearly suggest this one ought to be avoided. J Studios/DigitalVision via Getty Images As the investing world has become more and more enraptured with artificial intelligence (AI), finding every possible way to play this theme seems to be the name of the game for investors. One such avenue has beenThis article was written byRational Techne818 FollowersFollowI've been in the investing world for over 10 years at this point. My interests in writing on Seeking Alpha center around both the larger purview of macroeconomic themes, as well as around microeconomic issues regarding specific companies. In that way, my writing is very opportunistic, just like my investing. My goal, first and foremost, is to be able to articulate my views clearly and in a way that provides value for the reader, even if they disagree with the conclusions I come to. You might not always agree with me, but if I'm able to stimulate some interesting intellectual activity, I will consider that a success. Happy Investing!Analyst’s Disclosure:I/we have a beneficial short position in the shares of NVDA 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.