Nebius Group (NASDAQ: NBIS) Overview
Nebius Group’s stock has surged from $14.29 per share at its relaunch on October 21, 2024, to approximately $97, following its restructuring and return to the Nasdaq. The company reported a staggering 462% revenue increase in 2024 and anticipates a 373% rise for the full year, supported by a $23 billion market cap.
Despite significant growth and partnerships with firms like Microsoft and Meta, analysts caution that Nebius’s reliance on these major clients and limited data center operations could lead to steep losses as it expands its infrastructure. While it currently operates one primary data center in Finland and leases additional sites, the need for increased capital expenditure raises concerns about its business sustainability.
In contrast, DigitalOcean (NYSE: DOCN), with a market cap of $5.4 billion and an anticipated 15% revenue growth for 2025, is seen as a more stable option in the AI infrastructure market. DigitalOcean, which pivoted successfully to cater to smaller businesses, is expanding its services and data center footprint, indicating a promising outlook with lower associated risks compared to Nebius.
