Nebius Group (NASDAQ:NBIS) Shares Down 3.8% - Should You Sell?

Key Points

• Nebius Group shares fell 3.8% in mid-day trading, even as the stock has seen recent volatility and heavy volume. It traded as low as $172.25 and last changed hands at $179.11, below its prior close of $186.10.
• Fundamentals and expansion plans remain a major focus: the company recently broke ground on a gigawatt-scale AI factory campus in Missouri, while investors await Q1 earnings for evidence that capex and capacity growth are progressing as planned.
• Analysts are split but generally constructive, with several firms raising price targets and maintaining Buy ratings, though concerns remain about Nebius’s high valuation, heavy spending, and the need for execution to support the AI growth narrative.

Shares of Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) fell 3.8% during mid-day trading on Tuesday . The company traded as low as $172.25 and last traded at $179.11. 11,507,303 shares traded hands during trading, a decline of 25% from the average session volume of 15,386,848 shares. The stock had previously closed at $186.10.

Key Headlines Impacting Nebius Group

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

• Positive Sentiment: Bank of America raised its price target on Nebius Group to $205 from $175 and reiterated a Buy rating, signaling stronger confidence in the company’s AI cloud growth story. Nebius Stock Is Jumping: What's Behind the Surge?
• Positive Sentiment: Nebius broke ground on its flagship gigawatt-scale AI factory campus in Independence, Missouri, its first U.S. digital infrastructure project at that scale, which supports long-term AI capacity growth and potential revenue expansion. Nebius breaks ground on gigawatt-scale AI factory in Independence, Missouri
• Positive Sentiment: Broader AI investment enthusiasm remains strong, helped by news that Nvidia’s equity commitments have topped $40 billion this year, reinforcing demand for AI infrastructure providers like Nebius. Nvidia Expands AI Investment Push
• Neutral Sentiment: Investor attention is also focused on Nebius’s upcoming Q1 earnings and whether it can show meaningful capex execution and capacity buildout progress to justify its ambitious expansion plans. Nebius Q1 Preview: The $18B Question
• Negative Sentiment: Despite the growth narrative, analysts and commentators continue to flag Nebius’s high valuation and heavy spending as key risks, which can pressure the stock if execution does not keep pace. What Should Investors Do With Nebius Stock Ahead of Q1 Earnings?

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on NBIS. Morgan Stanley began coverage on shares of Nebius Group in a research report on Thursday, January 15th. They set an "equal weight" rating and a $126.00 target price on the stock. BWS Financial boosted their target price on shares of Nebius Group from $130.00 to $200.00 and gave the stock a "buy" rating in a research report on Monday, March 16th. Weiss Ratings raised shares of Nebius Group from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, April 27th. Wall Street Zen lowered shares of Nebius Group from a "sell" rating to a "strong sell" rating in a research report on Saturday, April 11th. Finally, DA Davidson boosted their target price on shares of Nebius Group from $150.00 to $200.00 and gave the stock a "buy" rating in a research report on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Nebius Group presently has an average rating of "Moderate Buy" and a consensus price target of $159.33.

Nebius Group Trading Down 3.8%

The firm has a market capitalization of $45.10 billion, a P/E ratio of -122.68 and a beta of 4.03. The company has a quick ratio of 3.08, a current ratio of 3.08 and a debt-to-equity ratio of 0.89. The business has a 50-day moving average price of $128.87 and a 200-day moving average price of $108.30.

Nebius Group (NASDAQ:NBIS - Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The company reported ($0.69) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.42) by ($0.27). Nebius Group had a net margin of 19.02% and a negative return on equity of 11.71%. The firm had revenue of $227.70 million for the quarter, compared to the consensus estimate of $246.05 million. Analysts anticipate that Nebius Group N.V. will post -2.44 earnings per share for the current year.

Insider Transactions at Nebius Group

In other Nebius Group news, CEO Arkadiy Volozh sold 33,358 shares of the company's stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $103.73, for a total value of $3,460,225.34. Following the sale, the chief executive officer directly owned 868,289 shares in the company, valued at $90,067,617.97. This represents a 3.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Andrey Korolenko sold 31,357 shares of the company's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $111.20, for a total value of $3,486,898.40. Following the completion of the sale, the insider owned 585,209 shares in the company, valued at $65,075,240.80. This trade represents a 5.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 146,441 shares of company stock valued at $17,672,342.

Institutional Trading of Nebius Group

A number of large investors have recently bought and sold shares of the stock. Orbis Allan Gray Ltd boosted its stake in Nebius Group by 12.4% in the second quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company's stock worth $976,681,000 after purchasing an additional 1,949,708 shares in the last quarter. Fred Alger Management LLC boosted its stake in Nebius Group by 33.4% in the third quarter. Fred Alger Management LLC now owns 10,132,279 shares of the company's stock worth $1,137,551,000 after purchasing an additional 2,536,832 shares in the last quarter. Jericho Capital Asset Management L.P. boosted its stake in Nebius Group by 55.7% in the third quarter. Jericho Capital Asset Management L.P. now owns 4,607,497 shares of the company's stock worth $517,284,000 after purchasing an additional 1,648,497 shares in the last quarter. Morgan Stanley boosted its stake in Nebius Group by 35.2% in the fourth quarter. Morgan Stanley now owns 3,704,659 shares of the company's stock worth $310,099,000 after purchasing an additional 964,984 shares in the last quarter. Finally, Clear Street Group Inc. boosted its stake in Nebius Group by 95.0% in the fourth quarter. Clear Street Group Inc. now owns 3,511,656 shares of the company's stock worth $293,943,000 after purchasing an additional 1,710,924 shares in the last quarter. 21.90% of the stock is currently owned by institutional investors.

About Nebius Group

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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