Why NBIS Stock Is in the Spotlight
NBIS stock has surged from under $20 to more than $115 in a few months. Many retail traders see it as the next big AI opportunity. But while the momentum looks impressive, the fundamentals and market signals tell a very different story.
Valuation Metrics Are Alarming
The current valuation of NBIS stock is detached from reality:
- Market Capitalization: $29 billion
- Revenue: $241 million
- Price-to-Sales (P/S): 120
- Book Value per share: $15.82 vs market price above $115
This means investors are paying 120 times annual sales for a company still struggling with profitability. Historically, such extremes are unsustainable.
EPS vs Net Income: A Red Flag
While reported net income is $240 million, earnings per share (EPS) are negative:
- EPS (ttm): –1.03
- Forward EPS: –2.23
This suggests that the apparent profit may include one-time gains, while core operations remain unprofitable. For shareholders, EPS is the key measure, and it clearly shows losses.
Options Market Sentiment: Institutions Are Bearish
Option order flow gives additional warning signs:
- September 22, 2025: net option delta –153K (bearish)
- October 1, 2025: slight recovery to +52K, but institutions stayed net short
- Retail traders continue buying calls, while professionals and institutions are on the sell side
This divergence is a classic signal: retail is buying the hype, institutions are unloading.
Technical Analysis: Parabolic and Overbought
The chart of NBIS stock shows:
- Over +300% performance year-to-date
- RSI near 74, indicating overbought conditions
- Resistance in the $115–118 range, with support closer to $100
Parabolic price moves rarely last. A retracement toward $90–100 is highly possible.
Why NBIS Stock Is a Dangerous Buy
- Extremely high valuation: P/S 120
- Negative EPS despite reported income
- Institutions selling into retail demand
- Overextended technical setup
Final Verdict: Don’t Buy NBIS Stock
NBIS stock is a textbook case of hype-driven overvaluation. While momentum could briefly push it higher, the downside risk outweighs the upside potential. Disciplined investors should avoid entering at these levels.
The message is clear: don’t buy NBIS stock.