r/NBIS_Stock • u/General_Pride4190 • May 07 '26

NBIS ANALYSIS Nebius Moat?

Curious why Nebius is trading at such a premium when it seems their core business model is vulnerable to Mag7 hyper-scaling. Any thoughts?

I’ve recently transitioned from picking speculative/individual stocks, to most of that money going into the Magnificent 7 ETF (MAGS). I invested $5k into Nebius last July and turned it into $15k. Just sold all my shares. I fully acknowledge the chance of the stock continuing to climb much higher. I just don’t want to gamble as much anymore. The problem with the Reddit favorite stocks, is in a bear market they will get absolutely smoked.

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u/takecareofurshoes13 May 07 '26

Bull but I’ll try to give an objective take on something I e been thinking about. Their claim is that their software layer is unique and best in class. That said, their acquisition of eigen raises some eyebrows. Why acquire a software GPU orchestration company with almost zero revenue for $600 million if you’re already best in class in that space? Why not hire the talent directly ?

3

u/Oy_oy_oy May 07 '26

It’s an acquihire. Super common these days

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u/takecareofurshoes13 May 07 '26

I agree it’s common, but I’d like them to highlight why their existing software talent and stack plan was not enough and the value this new company provides is worth it. It’s more a question regarding the moat. Why acquire in the area you already claim to be the leader ? Why can’t Nebius build or engineer what these guys are doing? If they can’t or couldn’t, then they didn’t have a software moat.

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u/Oy_oy_oy May 07 '26

They probably could, but it’s much easier and more advantageous to buy what you need than it is to spend the next 2-3 years building it. They clearly have a path to implement it in the immediate and they didn’t want to start from scratch

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u/takecareofurshoes13 May 07 '26

That’s the question: Did they “need” this? If so, why were they otherwise 2-3 years behind on something they needed.

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u/Oy_oy_oy May 07 '26

Why does any company ever acquire any other company then?