Nebius Group (NASDAQ:NBIS) Cut to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Nebius Group to “strong sell”, contrasting with a broader analyst consensus of “Moderate Buy” and a $221.64 average price target.
• Nebius reported better-than-expected quarterly results, with revenue of $399 million—up 684% year over year—and an EPS loss of $0.23 versus the expected $0.81 loss.
• Shares opened at $187.97, well below their 52-week high of $299.86, while insiders sold approximately $137.4 million of stock over the past three months, adding to investor concerns about valuation and sentiment.

Nebius Group (NASDAQ:NBIS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued to clients and investors on Saturday.

Other research analysts also recently issued research reports about the stock. Citigroup cut their price objective on shares of Nebius Group from $287.00 to $278.00 and set a "buy" rating on the stock in a research report on Wednesday. Morgan Stanley increased their price target on Nebius Group from $126.00 to $144.00 and gave the company an "equal weight" rating in a research note on Thursday, May 14th. Weiss Ratings raised shares of Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, May 20th. Freedom Capital upgraded Nebius Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Finally, Bank of America upped their target price on Nebius Group from $240.00 to $280.00 and gave the stock a "buy" rating in a research note on Monday, June 8th. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, Nebius Group has an average rating of "Moderate Buy" and a consensus price target of $221.64.

Nebius Group Stock Down 1.0%

Shares of Nebius Group stock opened at $187.97 on Friday. The company has a debt-to-equity ratio of 1.16, a current ratio of 8.33 and a quick ratio of 8.33. Nebius Group has a 1 year low of $62.01 and a 1 year high of $299.86. The firm's 50-day moving average is $224.43 and its two-hundred day moving average is $163.44. The stock has a market cap of $47.56 billion, a price-to-earnings ratio of 60.64 and a beta of 4.23.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its earnings results on Thursday, May 14th. The company reported ($0.23) EPS for the quarter, beating analysts' consensus estimates of ($0.81) by $0.58. The business had revenue of $399.00 million for the quarter, compared to the consensus estimate of $375.13 million. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. The company's revenue for the quarter was up 684.0% compared to the same quarter last year. As a group, research analysts expect that Nebius Group will post -1.57 earnings per share for the current fiscal year.

Insider Transactions at Nebius Group

In other Nebius Group news, CEO Arkadiy Volozh sold 46,627 shares of Nebius Group stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total transaction of $10,978,327.15. Following the transaction, 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Danila Shtan sold 16,937 shares of the company's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total value of $3,987,816.65. Following the completion of the transaction, the chief technology officer directly owned 274,763 shares in the company, valued at approximately $64,692,948.35. This trade represents a 5.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 651,704 shares of company stock valued at $137,422,230 in the last three months.

Institutional Investors Weigh In On Nebius Group

Hedge funds have recently bought and sold shares of the stock. State Street Corp raised its holdings in shares of Nebius Group by 2,391.3% in the 4th quarter. State Street Corp now owns 3,219,326 shares of the company's stock valued at $269,474,000 after purchasing an additional 3,090,103 shares in the last quarter. Capital Research Global Investors acquired a new position in Nebius Group in the fourth quarter valued at $231,635,000. Jennison Associates LLC boosted its holdings in shares of Nebius Group by 134.3% in the second quarter. Jennison Associates LLC now owns 3,983,899 shares of the company's stock valued at $1,100,233,000 after acquiring an additional 2,283,676 shares during the period. Accel Leaders 3 Associates L.P. purchased a new position in shares of Nebius Group during the fourth quarter worth approximately $188,496,000. Finally, Qube Research & Technologies Ltd acquired a new stake in shares of Nebius Group during the third quarter worth about $238,511,000. Institutional investors and hedge funds 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: Citigroup assigned Nebius a new $278 price target, while the broader analyst consensus remains “Moderate Buy,” indicating that some Wall Street analysts still see substantial upside. Nebius Given New $278 Price Target at Citigroup Nebius Receives Moderate Buy Recommendation
• Positive Sentiment: Investor interest remains supported by Nebius’ AI data-center expansion and strong underlying demand. The company’s most recent quarterly results exceeded revenue and EPS expectations, although the upcoming report will be important in determining whether capacity investments are translating into profitable growth.
• Neutral Sentiment: Options-market positioning implies heightened volatility around next week’s earnings announcement. Investors are watching revenue growth, data-center deployment costs, capital spending and the pace at which new capacity generates sales. Nebius Stock and Options Market Ahead of Earnings
• Negative Sentiment: Famed investor Michael Burry disclosed a short position in Nebius, arguing that AI-related companies look overvalued and vulnerable. His comments have intensified scrutiny of Nebius’ premium valuation, debt-funded growth and data-center plans. Michael Burry Says He Is Shorting Nebius
• Negative Sentiment: Analyst downgrading and profit-taking have added to the selling pressure after the shares’ substantial advance over the past year. A Nebius director also sold approximately $1.5 million of stock, a relatively small disposal compared with his remaining holdings but another potential sentiment headwind. Nebius Shares Following Analyst Downgrade Nebius Director Stock Sale

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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