Nebius: AI Discount Bin

Stone Fox CapitalInvesting Group LeaderFollow5ShareSavePlay(8min)Comments(11)SummaryNebius Group N.V. reported a strong ending ARR total, but the market is stuck focused on short-term revenue hiccups.NBIS is positioned as an AI cloud leader, suggesting strong long-term growth potential with a '26 ending ARR of $7 billion to $9 billion.The AI cloud company will have less than 50% of '26 ARR from the hyperscalers, providing solid diversification and reduced counterparty risk.The stock trades at 3x '26 ending ARR and less than 1x the ARR estimate for the targeted power capacity.This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » peshkov/iStock via Getty Images Nebius Group N.V. (NBIS) announced a strong quarter to end 2025, yet the stock initially dipped. The market no longer respects the progress being made by an AI cloud leader, likely due to a misperception ofThis article was written byStone Fox Capital54.94K FollowersFollowStone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NBIS over the next 72 hours. 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. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.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.