Following its separation from Yandex, Nebius Group is poised to relist on Nasdaq. The AI cloud company faces a challenging market but offers potential growth opportunities for investors.
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| Nebius Group, the AI infrastructure firm spun off from Yandex, is set to make a volatile Nasdaq comeback. Investors anticipate significant price swings as the company's stock resumes trading after a lengthy suspension. Symbolic image |
New York, USA – October 21, 2024:
Investors in Nebius Group, a newly formed AI infrastructure firm, are anticipating a turbulent trading debut on Monday as the company’s Nasdaq listing is revived following a lengthy suspension. Nebius, formerly part of Russia's Yandex, has undergone a significant transformation since the suspension, which was triggered by Russia's invasion of Ukraine in February 2022.
The company, which now aims to capitalize on the growing AI cloud market, has seen its valuation plummet from over $30 billion to a fraction of that. With a free float of 78.1% and a significant portion of its shares held by Western investors, analysts predict extreme volatility in the initial trading days.
Denis Buivolov, a personal investor in Nebius and head of research at BCS' venture capital and pre-IPO department, expects the stock to be highly volatile due to the high concentration of Western ownership. He values the company at $4.6 billion, or $23 per share, based on its growth plans and comparisons with similar firms.
Other investors are also cautiously optimistic about the company's prospects. One investor, who once held shares worth around $200,000, indicated that they may buy more shares on Monday if the price drops significantly. Dr Jan-Oliver Strych, an adviser to a family fund that invested in Nebius, noted that the stock's value will be determined by the interplay between the positive impact of increased investor demand for AI and the negative impact of impatient sellers.
Nebius, which provides Nvidia GPUs and AI cloud services, is positioned to benefit from the rapid growth of these markets in the coming years. The company expects its revenue to increase by three to four times in 2025, driven by significant investments in data center capacity.
As Nebius prepares for its Nasdaq relisting, investors will be closely watching to see how the market reacts to the company's new positioning and growth prospects. The upcoming trading days are likely to be marked by volatility as investors assess the potential risks and rewards associated with this emerging AI infrastructure firm.