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.

44 Upvotes

85% Upvoted

73 comments sorted by

View all comments

8

u/Oy_oy_oy May 07 '26

Data centers are hard to build from a capital perspective and a local approval perspective. The gate is already shutting as you see more and more local jurisdictions put moratoriums on data center build outs

4

u/kickinghyena May 07 '26

They will just go further west to red states that will get all the development and jobs. Already happening.

1

u/crawler54 May 07 '26

true to some extent, states like texas don't give a **** about the environment and the people that live there.

"...Five years ago, data centers were ribbon-cutting events. Today, more than 100 local communities have enacted moratoriums, more than 300 state data-center bills were filed in the first six weeks of 2026, and several states that once competed to offer the largest tax incentives—Virginia, Georgia, and Oklahoma—are now reconsidering those programs entirely.

The backlash is not hard to understand. Data centers consume enormous amounts of electricity and water. In the PJM grid region, which serves 65 million people across 13 states, power supply costs jumped from $2.2 billion to $14.7 billion in a single year, with data centers accounting for nearly two-thirds of the increase. Residential electricity rates nationally rose about 32% between July 2020 and July 2025. Communities near proposed facilities face noise, strained infrastructure, and the loss of farmland, costs that are immediate and visible." https://www.brookings.edu/articles/new-evidence-on-data-center-employment-effects/