Nebius Group N.V. $NBIS Position Trimmed by FirstWave Capital Management LLC

Key Points

• FirstWave Capital Management cut its Nebius Group position by 50.1% in the second quarter, selling 44,754 shares and retaining 44,645 shares worth approximately $12.33 million. The stock still represented 5.4% of the fund’s portfolio.
• Nebius reported 454% year-over-year revenue growth to $582.3 million and a quarterly loss of $0.12 per share, substantially better than analysts’ expected loss of $0.67. Analysts maintain a “Moderate Buy” consensus with an average price target of $226.
• Investor sentiment is mixed: new institutional purchases and expansion plans support the AI-infrastructure growth story, while insider selling, high valuation, debt-funded data-center spending and potential excess capacity remain significant risks.

FirstWave Capital Management LLC trimmed its position in Nebius Group N.V. (NASDAQ:NBIS - Free Report) by 50.1% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 44,645 shares of the company's stock after selling 44,754 shares during the period. Nebius Group comprises about 5.4% of FirstWave Capital Management LLC's portfolio, making the stock its 4th largest holding. FirstWave Capital Management LLC's holdings in Nebius Group were worth $12,330,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the company. Royal Bank of Canada purchased a new position in shares of Nebius Group in the first quarter valued at approximately $1,628,000. Millennium Management LLC purchased a new stake in shares of Nebius Group during the first quarter worth approximately $11,563,000. NewEdge Advisors LLC acquired a new position in Nebius Group in the 1st quarter valued at $40,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in Nebius Group in the 1st quarter valued at $9,084,000. Finally, Daiwa Securities Group Inc. purchased a new position in Nebius Group in the 2nd quarter valued at $68,000. 21.90% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Nebius Group

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

• Positive Sentiment: Stephen Mandel’s Lone Pine Capital opened a position in Nebius during the second quarter, making NBIS the fund’s largest holding. The investment adds credibility to the AI infrastructure story and may encourage other investors to reassess the company’s growth prospects. Billionaire Stephen Mandel’s Top 2 AI Stock Picks
• Positive Sentiment: Nebius is targeting major 2027 expansion, supported by multibillion-dollar AI-cloud agreements, premium pricing and increased data-center capacity. The company’s year-end contracted power target reportedly rose from more than 3 gigawatts to 5 gigawatts, strengthening the potential revenue base if that capacity is deployed successfully. Will Nebius Group’s Mega AI Deals Power Its 2027 Growth Story?
• Positive Sentiment: Recent coverage points to technical upside and continued investor interest in Nebius as a leading AI infrastructure stock. Its latest quarterly results also showed revenue growth of 454% year over year and an earnings loss narrower than analysts expected, supporting the growth narrative. Why Nebius Group Should Find a Floor at Current Levels
• Neutral Sentiment: Commentators continue comparing Nebius with CoreWeave and other “neocloud” providers. The comparisons highlight strong AI-compute demand but also raise questions about pricing, competitive differentiation and how much future growth is already reflected in NBIS’s valuation. Sam Altman Sees Unsustainable Silliness in AI Compute Spending
• Negative Sentiment: Bearish analysis warns that the economics may not justify the stock’s valuation, particularly as Nebius and peers take on significant debt to fund data-center construction. Planned capital spending, customer concentration and the risk of excess AI capacity remain material risks. Nebius: The Math Doesn’t Work
• Negative Sentiment: CFO Sanchez Maria Del Dado Alonso sold 470 shares for approximately $92,120, reducing her direct stake by 3.71%. The relatively small transaction is unlikely to alter fundamentals but could modestly weigh on sentiment. CFO Sells Nebius Group Shares

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on NBIS shares. Citigroup lifted their target price on shares of Nebius Group from $278.00 to $324.00 and gave the stock a "buy" rating in a research note on Friday, August 14th. Citizens Jmp raised their price target on shares of Nebius Group from $175.00 to $270.00 and gave the stock a "market outperform" rating in a research note on Thursday, May 14th. Freedom Capital upgraded shares of Nebius Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 20th. Piper Sandler initiated coverage on shares of Nebius Group in a report on Monday, August 3rd. They issued a "neutral" rating and a $224.00 price objective for the company. Finally, DA Davidson reissued a "neutral" rating and issued a $175.00 target price on shares of Nebius Group in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Nebius Group has a consensus rating of "Moderate Buy" and a consensus price target of $226.00.

Insider Buying and Selling at Nebius Group

In other news, Director John Wilson Iv Boynton sold 5,812 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $253.29, for a total transaction of $1,472,121.48. Following the completion of the transaction, the director directly owned 378,665 shares in the company, valued at approximately $95,912,057.85. This represents a 1.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Arkadiy Volozh sold 46,627 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total value of $10,978,327.15. Following the sale, the chief executive officer directly owned 821,662 shares of the company's stock, valued at $193,460,317.90. The trade was a 5.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 159,013 shares of company stock worth $39,216,975.

Nebius Group Price Performance

Shares of NBIS stock opened at $226.39 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 4.03 and a quick ratio of 4.03. The company has a market capitalization of $57.28 billion, a PE ratio of -7,543.82 and a beta of 4.23. The firm's 50-day moving average is $212.58 and its two-hundred day moving average is $181.77. Nebius Group N.V. has a 12 month low of $63.26 and a 12 month high of $299.86.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share for the quarter, beating the consensus estimate of ($0.67) by $0.55. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The business had revenue of $582.30 million during the quarter, compared to analysts' expectations of $567.91 million. During the same quarter in the prior year, the company posted $2.38 EPS. The business's revenue for the quarter was up 454% on a year-over-year basis. Analysts predict that Nebius Group N.V. will post -3.76 earnings per share for the current year.

Nebius Group Company Profile

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company's services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability.

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