Another day, another tech stock going completely bonkers. Nebius Group, formerly Yandex, is up like 347% this year. 347%! Give me a break. The hype train is real, folks. But is it too real? Are we talking stock split real?
Nebius, now all about AI cloud computing, is the shiny new toy. Cloud computing, AI, data centers… it’s all the buzzwords rolled into one overpriced package. They're building AI data centers and raking in billions to finance them. $1.15 billion from a public offering and another $3.16 billion in convertible notes? Who's throwing this money around? And more importantly, why?
They even snagged a $19.4 billion deal with Microsoft. Nineteen point four billion! Okay, that's impressive, I'll admit. The stock jumped 200% after that announcement. But here's the thing: Nebius ain't even profitable yet.
Second-quarter revenue was $105.1 million, up 625% from last year. Okay, that's a big jump. They're bragging about being profitable on adjusted EBITDA. Adjusted EBITDA? That's like saying you're healthy because you look good in a mirror, even though you're mainlining sugar and caffeine. Real profitability is what matters, people.
And all this talk about stock splits... is it justified?
Everyone's screaming for a stock split because it makes the stock "more affordable." Please. It's just financial engineering to make people think they're getting a deal. Like a buy-one-get-one-free offer where they doubled the price.
Chipotle split their stock 50-to-1 because it was over $3,200 a share. Nebius is around $125 right now. The article says, "If Nebius Group's stock price approaches $500, I would start considering it a stock-split candidate." Stock-Split Watch: Is Nebius Group Next? Five hundred? I say, wake me up when it hits a grand.
Honestly, all this focus on stock splits is a distraction. It's financial clickbait for the easily impressed. Are people really making investment decisions based on whether or not a company splits its stock? Are we really this gullible?
I'm more concerned about the fundamentals. This company is burning cash, relying on hype, and swimming in debt. But hey, maybe I'm just an old cynic who doesn't understand the "future of AI."
Did anyone else notice that the gross margin is NEGATIVE 2007.45%? I had to do a double take. I mean, how is that even possible? Are they paying people to take their product? Something smells rotten in Denmark, folks.
And the volume... Average volume is 18 million, but today it's only 473K. Is everyone finally waking up and selling? Or is it just a temporary lull before the next pump and dump? I honestly don't know.
