Quick Read – Nebius (NBIS) reported Q1 revenue of $399M, missing estimates by 33%, but AI Cloud segment surged 841% YoY with 45% adjusted EBITDA margin. – Rising interest rates threaten Nebius’s financing model, as borrowing costs jumping from 6% to 10% would erase roughly 20%…
margins over five-year contracts. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Nebius Group wasn’t one of them. Get them here FREE
The AI boom rests on cheap capital. Nebius Group (NASDAQ:NBIS) CEO Arkady Volozh just spelled out how a few hundred basis points of borrowing cost could undermine the economics of the buildout. In a recent interview with venture capital firm Accel, Volozh walked through his company’s financing stack: “For a startup like us with all of our public NASDAQ status and size, we’re still a young startup for the banks working in a very risky new part of the economy.
If you want to get your financing for, I don’t know, 10, 12%, you can get it. It depends on the size, but it kills all of the economy. People maybe don’t understand the difference between 6% annual interest and 9% annual interest, 10% annual interest.