After UK Deal, Nebius Stock Is Still Too Expensive to Buy

Nebius' (NBIS) shares rallied on June 8 after the company disclosed that it would spend roughly 1.7 billion British pounds to develop three new UK sites, which will utilize Nvidia's (NVDA) “AI factory platform technology.” But given the U.K.'s relatively small, slow-growing economy, the project may not move the needle much for Nebius' financial results. Moreover, the stock's valuation is extraordinarily high, especially because the firm's core business may easily become commoditized and very competitive in the longer term.

In light of these points, I would avoid buying the company's shares at their current levels.