Nebius Group N.V. shares climbed nearly 12% in morning trading Monday, extending a rebound for the AI cloud infrastructure provider as investors digested a multiyear computing contract and the activation of next-generation Nvidia hardware.

The stock traded near $213.16, up $22.75, after the company announced a multiyear agreement to supply more than $1 billion in GPU-based cloud services through 2029 to Reflection AI. Nebius also reported that its Vera Rubin compute rack is now operational at its data center in Finland, expanding capacity for advanced AI workloads.

The moves add to a series of large-scale customer commitments that have positioned Nebius as a significant player in the neocloud sector, which supplies specialized computing power for artificial intelligence model training and inference. The company already counts multiyear agreements with major technology firms, including a capacity deal with Meta Platforms valued at up to $27 billion over five years and substantial business with Microsoft.

Nebius, based in Amsterdam, has pursued aggressive expansion of its data center footprint and GPU inventory to meet demand that management has described as consistently outstripping available supply. In the first quarter of 2026, group revenue rose 684% year over year to $399 million, while the core Nebius AI cloud business delivered $390 million, up 841% from the prior-year period. Annualized run-rate revenue for the AI segment reached $1.9 billion at the end of March.

Adjusted EBITDA for the group turned positive at $130 million in the first quarter, with a 32% margin, while the AI cloud business posted a 45% adjusted EBITDA margin. The company reiterated full-year 2026 guidance calling for annualized run-rate revenue of $7 billion to $9 billion, group revenue of $3 billion to $3.4 billion and an adjusted EBITDA margin around 40%.

Capital expenditures remain elevated as Nebius builds capacity. Management raised its 2026 CapEx outlook to $20 billion to $25 billion to support power and infrastructure targets exceeding 4 gigawatts of contracted capacity by year-end. A new site in Pennsylvania is designed to support up to 1.2 gigawatts once fully operational. Funding has come from a mix of customer prepayments, equity investment, convertible notes and, more recently, a senior secured debt facility.

Nvidia holds a notable stake in Nebius and has deepened technical collaboration, including recognition of Nebius infrastructure for advanced GPU generations. The partnership has been cited by analysts as a strategic advantage in securing hardware supply and co-developing capabilities for training and inference workloads.

The Reflection AI contract provides additional multiyear revenue visibility at a time when AI infrastructure providers face high upfront costs before utilization ramps. Industry demand continues to be supported by heavy capital spending from hyperscalers and enterprise customers racing to expand model training capacity and deploy generative AI applications.

Nebius is scheduled to report second-quarter results on August 12. Analysts expect continued strong top-line growth, with consensus revenue estimates near $577 million, representing several hundred percent year-over-year expansion, though adjusted losses are still anticipated as the company invests ahead of capacity coming online.

The stock has experienced significant volatility throughout 2026, reflecting both enthusiasm for AI infrastructure pure-plays and concerns about capital intensity, customer concentration and the pace of capacity deployment relative to contracted demand. Shares have risen sharply over the past year on the back of major contract announcements and improving operating metrics.

Market participants will watch closely for updates on utilization rates, additional customer wins, power acquisition progress and any revisions to the ambitious full-year targets. The combination of a new multiyear contract and operational milestones with Nvidia hardware has reinforced the narrative that Nebius is converting AI demand into tangible capacity and contracted revenue.

As the company scales its platform across existing and new sites, the focus remains on delivering the contracted power and converting backlog into recognized revenue while managing the substantial capital requirements of the build-out. The latest announcements have provided near-term catalysts for the shares amid broader positive sentiment toward AI infrastructure names.

Putting Iran aside for a moment, I want to point out, besides Iranian news, just how strong the American economy is — war or not. By the way, the Dow Jones index just hit a new record high of 53,178.  

Today’s Institute for Supply Management manufacturing index came in far higher than consensus estimates, and scored its seventh straight monthly gain. We haven’t seen anything like this in years. And if you run your finger down the survey category — whether its new orders, or production, or employment, or even order backlogs, it’s a power-packed report. Seven straight months.

From a policy standpoint, two big issues: first, the One Big Beautiful Republican Bill, and its immediate 100 percent expensing of business investments, including the whole semiconductor connectivity, power networking boom, is driving this manufacturing renaissance. 

And, second, although mainstream economists may not like it, tariffs have refocused businesses domestic production away from offshoring. Hat-tip to our pal John Carney on this one.

This manufacturing report comes after a badly misunderstood GDP report — where the topline was only 1.5 percent growth, but the guts of the economy, which is consumer spending and business investment, actually grew at 3.9 percent. And here too, business equipment is up more than 15 percent, all at an annual rate.

Unemployment claims are at record lows. Nobody’s getting fired. The AI doomsters are wrong. Jobs are rising, not falling. The American dollar is strong. Hopefully exerting lower inflation pressures.  And the aforementioned manufacturing AI productivity boom is leading to soaring profits, lower economy-wide costs, and guess what? A record breaking Dow. 53,178 at the close. How about those apples?

Sportradar Group AG shares fell nearly 16% in morning trading Monday after the sports technology company reported a second-quarter net loss and issued full-year guidance that reflected tempered growth expectations, even as revenue and adjusted earnings rose.

The stock traded sharply lower following the release of results for the period ended June 30. Revenue increased 19% year over year to €378 million, driven by stronger demand for betting technology and content. Adjusted EBITDA also rose 19% to €76 million, with the margin expanding to 20.2%. However, the company posted a loss of €4 million, or about 0.9% of revenue, compared with a profit in the year-earlier period.

Management attributed the swing to a loss primarily to unrealized foreign currency losses of €9 million linked to U.S. dollar-denominated sports rights, along with severance costs from efficiency initiatives. Operating cash flow and free cash flow both improved, rising 20% and 14% respectively.

“Sportradar’s second-quarter financial growth, along with the progress we delivered across a variety of key strategic initiatives, reflects our mission-critical role at the center of the global sports ecosystem,” Chief Executive Officer Carsten Koerl said. “Strong demand for our premium content, data and technology solutions, including increased monetization of our IMG ARENA rights portfolio, drove double-digit growth while deepening our relationships across our unparalleled global distribution network. We also further expanded our addressable market, entering into strategic partnerships with key prediction market participants that will enable us to capitalize on this fast-growing ecosystem.”

Betting Technology & Solutions, the company’s largest segment, grew 21% to €314 million. Within that, Betting & Gaming Content rose 27% to €254 million, helped by the integration of IMG Arena rights and new customer wins. Sports Content, Technology & Services increased 9%. U.S. revenue climbed 16% to €102 million, while the rest of the world grew 20%.

The company updated its full-year 2026 outlook to revenue growth of 19% to 21% on a constant-currency basis, translating to a range of €1,518 million to €1,533 million at current exchange rates. Adjusted EBITDA is projected to grow 24% to 27% on a constant-currency basis to €360 million to €368 million, with modest margin expansion. Free cash flow conversion is expected to exceed the 2025 level, excluding certain litigation costs.

Sportradar continued returning capital to shareholders, repurchasing $140 million of shares in the quarter. Since the inception of its repurchase program, the company has bought back $422 million of stock, including $311 million in 2026. It also upsized its revolving credit facility to €250 million, extending the maturity to 2031 and improving terms. Total liquidity stood at €501 million at quarter-end, with no debt outstanding.

Strategic developments included partnerships with prediction market platforms Kalshi and Polymarket, aimed at expanding Sportradar’s role in data, odds, integrity services and related solutions for that emerging sector. The company also extended its exclusive global data and audiovisual betting rights deal for Wimbledon with the All England Club and continued building its Playradar iGaming offering.

The results come against a backdrop of earlier pressure on the shares. The stock has declined substantially year to date amid concerns over growth rates in certain markets, foreign exchange impacts and previous short-seller reports that questioned aspects of the company’s client base. Those reports prompted regulatory reviews and class-action activity, though management has maintained that the vast majority of its business operates in regulated environments.

Investors appeared focused on the reported loss, the currency headwind and the updated guidance ranges, which some viewed as more conservative relative to prior expectations. The market reaction overshadowed the underlying double-digit growth in core operations and continued cash generation.

Sportradar, based in St. Gallen, Switzerland, provides sports data, content, technology and integrity services to sportsbooks, leagues, media companies and other partners worldwide. Its portfolio spans live data feeds, audiovisual content, betting solutions, fan engagement tools and integrity monitoring.

Looking ahead, the company highlighted ongoing innovation in its product suite, further monetization of acquired rights and opportunities in prediction markets and iGaming as sources of additional growth. Management reiterated a focus on operational efficiency and shareholder returns alongside investment in technology and content.

The sharp decline in the shares left them trading near multi-month lows. Trading volume was elevated as the market digested the quarterly figures and outlook. Analysts and investors will next assess whether the second-half performance can accelerate toward the higher end of the guided ranges and whether currency effects moderate.

While the top-line and adjusted profitability metrics showed continued expansion, the combination of a net loss and revised full-year figures proved sufficient to drive a significant sell-off. The coming months will test Sportradar’s ability to convert its expanding content rights, technology capabilities and new market partnerships into sustained acceleration that rebuilds investor confidence.

GameStop Corp. shares fell sharply Monday after the video game and collectibles retailer announced a private exchange of approximately $1.4 billion in convertible senior notes for common stock, a move that reduces long-term debt without using cash but increases the number of shares outstanding.

The stock traded down more than 11% in morning action, reflecting investor concerns over dilution even as the company continues its high-profile pursuit of eBay Inc. The exchange involves about $400 million of 0.00% notes due 2030 and $1.0 billion of notes due 2032. Noteholders will receive newly issued Class A common shares based in part on the stock’s average volume-weighted average price over a 35-trading-day period that began Monday, subject to a per-share floor. The transaction is expected to close around September 23, subject to customary conditions.

GameStop will not receive cash proceeds from the issuance. Upon completion, the exchanged notes will be canceled, cutting outstanding long-term debt by roughly $1.4 billion and leaving approximately $1.1 billion of the 2030 notes and $1.7 billion of the 2032 notes outstanding. The company described the deal as retiring debt without the use of cash.

The announcement comes amid GameStop’s ongoing campaign to acquire eBay. In early May, the company delivered a non-binding proposal to buy all outstanding eBay shares it does not already own at $125 per share in a mix of cash and GameStop stock, valuing the e-commerce platform at roughly $55 billion to $56 billion. eBay’s board rejected the offer, calling it neither credible nor attractive and citing questions about financing, management of a combined company and other terms.

GameStop has since substantially increased its ownership. It now holds approximately 43.4 million eBay shares, or about 9.8% of the company, after converting derivative positions and making open-market purchases. Chief Executive Ryan Cohen has repeatedly signaled determination to press forward. In comments following the stake increase, Cohen said, “we’re coming for eBay one way or another.”

Shareholders earlier approved an increase in authorized Class A common shares to 2.5 billion, providing additional flexibility for potential stock-financed transactions. Cohen also withdrew a previously approved CEO performance award, with the company stating it was focusing on the eBay opportunity. GameStop has pointed to its cash position, a non-binding commitment letter for up to $20 billion in debt financing from TD Securities contingent on investment-grade ratings for a combined entity, and its retail network as elements that could support a deal.

In late June, GameStop provided a fiscal 2026 outlook expecting adjusted EBITDA in excess of $600 million, up from $345.4 million in fiscal 2025. Management has framed the eBay pursuit as a strategic expansion that would combine GameStop’s physical retail footprint and growing collectibles business with eBay’s global marketplace platform, authentication capabilities and seller network.

The debt-for-equity exchange improves the balance sheet by lowering leverage at a time when the company is positioning itself for a potentially transformative acquisition. However, the issuance of new shares dilutes existing holders, a dynamic that typically pressures the stock in the near term. Market reaction Monday underscored that tension: while the reduction in debt is viewed as positive for credit metrics and future financing capacity, the increase in share count raised questions about ownership stakes and potential further equity issuance if a deal advances.

GameStop has been transforming its business model in recent years. Physical video game software sales have declined as digital distribution grows, but collectibles, trading cards and other categories have expanded to represent a larger share of revenue. The company has also explored partnerships, including delivery services, and maintained a significant cash reserve that has supported both share repurchases and the accumulation of the eBay stake.

eBay, for its part, has emphasized its own turnaround efforts and independent strategy. The marketplace operator has focused on improving its platform, expanding categories and returning capital to shareholders. Any potential combination would face regulatory review, financing hurdles and integration challenges given the scale difference between the two companies.

Analysts and investors will watch several developments in the coming weeks. These include the final share count issued in the notes exchange, any further updates on the eBay proposal or negotiations, quarterly operating results, and broader market conditions for meme-associated and retail stocks. GameStop’s ability to convert its eBay stake and financing commitments into a completed transaction remains uncertain, particularly after the initial rejection.

The sharp decline in GameStop shares on the exchange news highlights the market’s sensitivity to dilution even when paired with balance-sheet strengthening. At the same time, the company’s continued accumulation of eBay shares and public comments from leadership indicate the acquisition effort is far from abandoned. Whether the debt reduction ultimately bolsters credibility for a larger deal or simply reflects prudent capital management will depend on subsequent steps by both companies.

As trading continued Monday, the focus remained on how GameStop balances near-term shareholder dilution against longer-term strategic ambitions in a rapidly evolving retail and e-commerce landscape. The outcome of the eBay pursuit, if it advances, would rank among the most significant corporate moves in the company’s recent history.

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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.