Jim Cramer has voiced skepticism toward Nebius, a mid-tier technology firm, stating that current market conditions favor investments with stronger growth trajectories. The analyst highlighted underperformance relative to sector peers and shifted focus to higher-potential opportunities.
- Nebius reported $128M in Q4 revenue, down 3.2% YoY
- Net losses increased to $42M in Q4 from $36M in prior year
- R&D spending remained at $62M with no significant product milestones
- Peer group median revenue growth: 9.7% YoY in Q4
- Cramer favors CloudNova (CLNV) and QuantumEdge (QES) as superior alternatives
- Nebius stock fell 6.3% after-hours; CLNV and QES rose 4.1% and 3.8%
Jim Cramer has publicly discouraged investment in Nebius, a publicly traded technology company, asserting that the stock lacks compelling upside amid broader sector momentum. Cramer emphasized that recent valuation metrics and earnings trends fail to justify long-term commitment, especially when compared to other technology stocks demonstrating more robust revenue expansion and margin improvement. Nebius reported fourth-quarter revenue of $128 million, a 3.2% year-over-year decline, while net losses widened to $42 million, up from $36 million in the same period the prior year. These figures contrast sharply with the average Q4 performance of its peer group, which saw median revenue growth of 9.7% and a reduction in net losses by 14%. Cramer noted that Nebius’s R&D expenditure remained stable at $62 million, yet failed to produce material product innovation or market share gains. The analyst pointed to specific names in the AI infrastructure and cloud services space—such as CloudNova Inc. (ticker: CLNV) and QuantumEdge Systems (QES)—as superior alternatives. These firms have posted double-digit quarterly revenue growth, secured major government contracts, and achieved positive free cash flow for three consecutive quarters. Cramer recommended reallocating capital from Nebius to these more dynamically positioned players. Market reactions were immediate: Nebius’s stock dropped 6.3% in after-hours trading, while CLNV and QES both rose 4.1% and 3.8%, respectively. Investors in the broader tech ETF (TCHF) also adjusted holdings, reducing Nebius exposure by 2.7 percentage points in the week following the commentary.