Nebius Group (NASDAQ:NBIS) Upgraded to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Nebius Group to “strong buy” from “hold,” while broader analyst sentiment remains “Moderate Buy” with a consensus price target of $245.69. Ratings are mixed, ranging from “sell” to “outperform,” with targets as high as $399.
• Nebius reported strong operating momentum, including 454% year-over-year revenue growth to $582.3 million and a quarterly loss of $0.12 per share that beat estimates. Analysts expect the company to remain unprofitable for the full year.
• The stock opened at $171.45, well below its 50-day and 200-day moving averages, amid significant volatility and valuation concerns. Insiders have sold substantially more shares than they purchased recently, although institutional investors—including BlackRock and State Street—have increased their holdings.

Nebius Group (NASDAQ:NBIS - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday, Zacks reports.

Other research analysts have also recently issued reports about the company. Rothschild & Co Redburn assumed coverage on Nebius Group in a report on Monday, September 21st. They set a "sell" rating and a $84.00 target price on the stock. Weiss Ratings cut Nebius Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 15th. Citigroup raised their price target on Nebius Group from $278.00 to $324.00 and gave the company a "buy" rating in a research note on Friday, August 14th. William Blair began coverage on Nebius Group in a report on Wednesday, September 30th. They issued an "outperform" rating for the company. Finally, BNP Paribas Exane raised Nebius Group from a "neutral" rating to an "outperform" rating and increased their price objective for the stock from $260.00 to $399.00 in a research report on Thursday, September 24th. Four equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $245.69.

Nebius Group Trading Up 0.7%

Nebius Group stock opened at $171.45 on Monday. The stock's 50 day simple moving average is $222.86 and its two-hundred day simple moving average is $208.43. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82. Nebius Group has a 12 month low of $73.52 and a 12 month high of $299.86. The firm has a market cap of $43.38 billion, a PE ratio of -5,713.10 and a beta of 4.18.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, beating analysts' consensus estimates of ($0.67) by $0.55. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The firm had revenue of $582.30 million for the quarter, compared to analysts' expectations of $567.91 million. During the same period last year, the firm earned $2.38 EPS. The company's quarterly revenue was up 454% on a year-over-year basis. Analysts anticipate that Nebius Group will post -3.48 earnings per share for the current year.

Insider Activity at Nebius Group

In related news, CTO Danila Shtan sold 14,546 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $234.16, for a total value of $3,406,091.36. Following the completion of the sale, the chief technology officer directly owned 260,217 shares in the company, valued at approximately $60,932,412.72. The trade was a 5.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Arne Grimme purchased 148 shares of the stock in a transaction on Monday, October 19th. The shares were purchased at an average cost of $169.99 per share, with a total value of $25,158.52. Following the transaction, the director owned 6,329 shares of the company's stock, valued at $1,075,866.71. This trade represents a 2.39% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 158,490 shares of company stock worth $38,111,200 over the last three months.

Institutional Investors Weigh In On Nebius Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. lifted its stake in Nebius Group by 16.0% in the second quarter. BlackRock Inc. now owns 11,531,270 shares of the company's stock valued at $3,184,591,000 after buying an additional 1,593,684 shares during the last quarter. Situational Awareness LP acquired a new stake in shares of Nebius Group in the 2nd quarter worth approximately $1,232,895,000. State Street Corp lifted its position in Nebius Group by 16.2% in the second quarter. State Street Corp now owns 4,069,875 shares of the company's stock worth $1,123,977,000 after purchasing an additional 568,415 shares during the period. Jennison Associates LLC boosted its stake in Nebius Group by 134.3% during the second quarter. Jennison Associates LLC now owns 3,983,899 shares of the company's stock valued at $1,100,233,000 after buying an additional 2,283,676 shares in the last quarter. Finally, Accel Leaders 4 Associates L.P. bought a new position in shares of Nebius Group during the 2nd quarter valued at about $1,012,097,322. Hedge funds and other institutional investors own 21.90% of the company's stock.

Key Stories Impacting Nebius Group

Here are the key news stories impacting Nebius Group this week:

• Positive Sentiment: Nebius continues to benefit from strong underlying AI demand. Recent coverage highlighted 454% year-over-year quarterly revenue growth, approximately $3 billion in annualized recurring revenue, and a reported $37.5 billion signed backlog. Some analysts also view Nebius as better positioned than more heavily indebted competitors because of comparatively disciplined capital spending. Nebius Is Poised To Feast On The CoreWeave Rout
• Positive Sentiment: Analyst support remains a potential counterweight to the sell-off. Nebius has an overall “Moderate Buy” consensus rating and an average price target of $245.69, while separate coverage has cited targets as high as $355 and $399. A director also purchased 148 shares for about $25,159, offering a modest insider-confidence signal. Nebius Average Price Target
• Neutral Sentiment: The long-term AI buildout may still have substantial runway, with industry commentary suggesting that much of the expected spending on GPUs, data centers, power, cooling, and networking has yet to occur. However, this supports the broader opportunity rather than near-term earnings.
• Negative Sentiment: Elice’s 32% trading-debut collapse has intensified fears that AI-infrastructure valuations and demand expectations have become excessive. Shares of Nebius and CoreWeave came under pressure as investors questioned whether data-center operators can generate adequate returns on enormous GPU and capacity investments. Elice’s IPO Collapse Puts AI Infrastructure Stocks Under Fresh Pressure
• Negative Sentiment: Gartner-related commentary warned that as many as 80% of “neocloud” companies could fail or disappear by 2030 if AI capital spending continues to outpace returns. Investors are also focused on Nebius’s execution burden: it may need second-half revenue to more than double first-half revenue to meet its 2026 outlook. Gartner Neocloud Warning
• Negative Sentiment: Director Wilson Boynton sold 7,260 shares for approximately $1.29 million under a pre-arranged Rule 10b5-1 plan. He retained a substantial stake, limiting the signal, but the transaction adds to near-term selling pressure and investor caution. SEC Insider Transaction Filing

About Nebius Group

Nebius Group N.V. is a technology company focused on providing cloud infrastructure and services for artificial intelligence and machine learning applications. Through its Nebius AI division, the company offers access to high-performance computing, graphics processing units (GPUs), storage, networking, and related tools designed to help businesses and developers train, deploy, and operate AI models.

The company also operates or supports other technology businesses, including Toloka, an AI data and evaluation platform; TripleTen, an online education provider focused on technology careers; and Avride, a developer of autonomous driving and delivery technologies.

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