re: Nebius - NBIS - AI Infrastructure Company

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This is exactly the kind of thing I was worried about earlier in the week when I essentially said that announcing a deal like that before earnings is meant to hide the fact that you wouldn’t otherwise have anything to show.

They are hiding the actual EPS.
No matter how I look at it. That’s not good. I’d be thinking twice if NBIS did something similar.

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? Again as I said I agree not to put any credence into EPS for IREN as it has a lot of static, but I mean US GAAP is US GAAP. Recognition of unrealized gains and losses on derivative instruments is not optional in any shape or form - it is not like they were trying to trick - I mean should they not follow GAAP? I hope you would expect NBIS to follow GAAP?

And note IREN did not tout EPS at all - in their presentation of highlights (first slide - they did not meantion EPS, and when mentioning net income actually went out of their way to be Unrealized gains on forward and capped calls). They then literally showed on that same page an Adj EBITDA to back it out of EBITDA!

In fact, I do not even see EPS in their presentation at all. Presentation

Further in their press release they did not promote EPS. So I am lost how this is shady or tricky or hiding?

And in terms of 'nothing to show', this board spent a lot of time talking about the incredible growth rates of NBIS - this release shows going from $7.3 million for a quarter to 3.4 Billion ARR - if that is nothing, I would like to see what growth rates, including NBIS, that match or beat that.

Edit: Probably came across crankier then I meant it lol. TLDR, the Company calculated EPS in accordance with GAAP as required and in no way promoted it (others online did). They went ouf of their way to show ADJ EBITDA backing out the GAAP craziness. So I do not see that as tricky or shady - unless I am missing something

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am curious what you are looking at on this. I am looking at the Q and I do not see that but you may be comparing other periods.

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I was just doing some quick math from BB8’s post. I was also watching football so I may have been comparing wrong columns.

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I think that’s the question.

IREN is based in Australia I believe so their financials aren’t GAAP. I didn’t look at their actual financials but I did for NBIS - another foreign company - and they included an estimated “conversion” to GAAP on the last two pages of their financials on their website.

FWIW NBIS also includes unrealized gains in income that they back out in the GAAP conversion pages.

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IREN reports in GAAP. They could IFRS and reconcile but they do not. It is US GAAP.

Again, compliant as can be - even taking the step as an international company to go full US GAAP.

10Q

See Note 2 Basis of Presentation.

I’d rather start day red

Today looks ugly.

I’m liquid and probably gonna stay that way until the government opens.

Im at bargaining/acceptance

It looks like the market is skittish about AI. Bad news? Sell. Good news? Still a sell. I don't think it's just over valuation. I think a lot of people are rooting for AI to fail. They think of AI and they think it will eliminate everyone's job and we'll end up with Skynet.

I had that conversation with a guy at a bar a couple of weeks ago. He was an older fellow who was afraid computers were going to take over the world. He was worried about his grandchildren not being able to find a decent job. He was hoping that all the AI companies go bankrupt. I told him that it wasn't just AI companies using AI. I said everyone was going to be using it in some capacity. Companies, individuals, etc... Even if they didn't know it.

I don't think many people even know what AI is and what it can accomplish. I don't think AI folks have done a good job in communicating that with the public at large.

The CEOs of these large companies need to spend time educating people that AI can do more than create fake photos and videos. It will do more than self driving cars and coding. They need to educate people on how AI can help workers be more productive, not just eliminate their jobs.

Quite the paradox we find ourselves in.

Either AI “succeeds” and potentially millions are out of work and consumer spending cliff dives and defaults sky rocket

Or AI “fails” and the entire stock market and US gdp collapses

I’ve resigned myself to just letting it ride for the next month as the market has turned and my exposure doesn’t become an issue until the end of Nov. and I really just need NBIS above $120. Which seems crazy given where we were but that’s the world we’re in.

frick