Nebius Group N.V.

(NASDAQ Global Select)
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Somewhat Bullish +45

Jim Cramer Prefers CoreWeave (CRWV) Over Nebius (NBIS) β€” Is the Valuation Gap the Reason?

AI infrastructure Financial outlook AI-generated analysis

πŸ“ˆ Jim Cramer prefers CoreWeave over Nebius, finding the latter's recent stock move troubling despite acknowledging it is a good company.

πŸ’° Nebius Group N.V. reported second-quarter revenue of $582.3 million, representing a 454% year-over-year increase.

☁️ Nebius AI cloud revenue surged to $574.9 million, up 514% from the prior year period.

πŸ“‰ Nebius trades at a premium valuation with a forward P/E of 46.08x and price-to-sales multiple of 46.30x.

πŸ’Έ CoreWeave generated $2.575 billion in Q2 revenue compared to Nebius's $582.3 million, highlighting a scale gap.

πŸ—οΈ Nebius recorded adjusted EBITDA of $236.2 million in the second quarter, moving from a loss a year prior.

πŸ“‰ CoreWeave trades at 5.97x sales and 12.38x enterprise value to revenue, significantly cheaper than NBIS.

πŸ’³ Nebius closed a $5.75 billion convertible senior-notes offering in August to fund its expansion plans.

🏦 CoreWeave carries $35.6 billion in total indebtedness as of June 30 with six-month interest expense near $985 million.

πŸ“Š Hedge fund stakes in Nebius increased to 86 funds in Q2, up from 60 in Q1.

πŸ”» Short interest for Nebius ranged from roughly 18.5% to 23.2% of its float as of September 15.

βš–οΈ The article contrasts NBIS's high growth and profitability with CRWV's larger scale and lower valuation multiple.

Bullish Signals
  • Nebius Group N.V. achieved adjusted EBITDA profitability of $236.2 million in the second quarter, up from a loss of $21 million a year earlier.
  • The company reported strong revenue growth with Q2 figures rising 454% year-over-year to $582.3 million.
  • Nebius AI cloud revenue specifically rose 514% to $574.9 million, demonstrating rapid adoption of its services.
  • Hedge fund interest in the company increased significantly, with holders rising from 60 in Q1 to 86 in Q2.
Risk Factors
  • Jim Cramer expressed concern over Nebius's significant stock price movement, describing it as troubling despite liking the company.
  • The company trades at a much higher valuation than peers, with a forward P/E of 46.08x and EV-to-revenue multiple of 47.03x.
  • Nebius's price-to-sales multiple is more than seven times that of CoreWeave, suggesting a potential premium risk.
  • The company recorded $8.13 billion in purchases of property and equipment during the first half of 2026 against only $981.3 million in revenue.
  • Short interest remains elevated, ranging from roughly 18.5% to 23.2% of the float as of mid-September.
Full Analysis
Jim Cramer expressed a preference for CoreWeave (CRWV) over Nebius Group N.V. (NBIS) on Mad Money, citing concerns about NBIS's significant stock price movement despite acknowledging it as a good company. The article contrasts the two AI infrastructure leaders, noting that while both are expanding rapidly to meet demand, their financial profiles differ markedly in scale, growth rates, and valuation metrics. Nebius reported strong revenue growth with second-quarter figures rising 454% year-over-year to $582.3 million, including a 514% increase in AI cloud revenue. However, the company trades at a substantially higher valuation than CoreWeave, with forward P/E and price-to-sales multiples nearly four and seven times higher, respectively. Nebius achieved adjusted EBITDA profitability of $236.2 million in Q2 but continues to invest heavily in infrastructure. CoreWeave generates significantly larger revenue ($2.575 billion in Q2) and holds a massive backlog, trading at a much lower sales multiple despite carrying a heavier debt burden. The article highlights that Nebius's high valuation comes alongside significant capital commitments, whereas CoreWeave faces financing risks due to its substantial indebtedness. Hedge fund positioning shows increasing interest in both stocks, with short interest remaining notable for NBIS.