Skip to contentHome page Seeking Alpha - Power to InvestorsNetherlandsOct 20, 2026, 1:51 PM ETNebius Group N.V. (NBIS) StockCRWV, CRWV:CA3 CommentsJohnny Zhang, CFA2.89K FollowersSummaryNBIS's reported earnings are inflated by non-operating gains such as "gain from revaluation of investments in equity securities" and aggressive add-backs, masking underlying net losses.245% YoY increase in D&A and 597% YoY increase in SBC account for most of adjusted EBITDA growth, while a 300% YoY increase in deferred revenue understates net debt.Massive convertible note issuance and a 24% YoY increase in diluted shares pose substantial dilution threats to future shareholder returns.The capex-to-revenue ratio in 2Q FY2026 reached 971%, and a big jump in deferred revenue also inflated operating cash flow.After normalizing for deferred revenue, net debt to adjusted EBITDA TTM could reach +12x.Getty ImagesNebius Deserves a SellLast week, semiconductor and AI hyperscaler stocks had an indiscriminate selloff. Investors rushed to hit the sell button and fled to safety. I believe there are three major reasons behind the shift in AI sentiment. First, aThis article was written byJohnny Zhang, CFA2.89K FollowersI'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments(3)To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.