Nebius Group (NASDAQ:NBIS) Stock Price Down 1.6% After Earnings Miss

Key Points

• Nebius shares fell 1.6% after the company reported a quarterly loss of $0.68 per share, narrowly missing the $0.67 consensus estimate. Trading volume surged to roughly 36 million shares, more than double the average.
• Revenue rose 454% year over year to $582.3 million, beating estimates, while AI-cloud demand drove annual recurring revenue to about $3 billion and supported a contracted backlog exceeding $40 billion.
• Despite strong growth prospects, investors face elevated valuation and execution risks, including heavy infrastructure spending, rising debt and analyst disagreement. Wall Street’s consensus rating is “Moderate Buy,” but the average price target of $222.71 is below the recent share price.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s share price dropped 1.6% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $247.38 and last traded at $255.04. Approximately 35,980,705 shares were traded during trading, an increase of 102% from the average session volume of 17,777,354 shares. The stock had previously closed at $259.20.

The company reported ($0.68) earnings per share for the quarter, missing analysts' consensus estimates of ($0.67) by ($0.01). Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The business had revenue of $582.30 million for the quarter, compared to analyst estimates of $567.91 million. During the same quarter in the prior year, the firm earned $2.38 EPS. The firm's quarterly revenue was up 454% on a year-over-year basis.

More Nebius Group News

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

• Positive Sentiment: Nebius reported second-quarter revenue of $582.3 million, up 454% year over year and above analyst expectations. AI-cloud revenue grew even faster, while annual recurring revenue reached approximately $3 billion. Nebius beats quarterly revenue estimates as AI demand fuels growth
• Positive Sentiment: Management highlighted strong demand for AI compute, a contracted backlog exceeding $40 billion, expanding power capacity and premium pricing opportunities. Customer prepayments and other financing arrangements may help fund infrastructure expansion without relying solely on new equity or debt. NBIS Q2 Earnings Call Puts 2027 Capacity and Pricing in Focus
• Positive Sentiment: The company agreed with Vantage Data Centers to deploy NVIDIA-powered AI infrastructure at a Newport, Wales, campus, expanding Nebius’ U.K. capacity and supporting demand for domestic and sovereign AI computing. Vantage Data Centers and Nebius Expand UK AI Infrastructure
• Neutral Sentiment: Technical analysts remain bullish after the breakout, and Robert W. Baird raised its price target to $340 with an outperform rating. However, DA Davidson reaffirmed a neutral rating with a substantially lower $175 target, underscoring disagreement over fair value.
• Negative Sentiment: The quarterly loss of $0.68 per share narrowly missed consensus, while full-year revenue guidance of $3.0 billion to $3.4 billion was not above the $3.4 billion analyst estimate. The company also continues to require heavy investment to convert its backlog into operating capacity.
• Negative Sentiment: At a very elevated sales multiple after the recent rally, NBIS is vulnerable to profit-taking and volatility. Analysts have also warned that rising debt, capital spending, customer concentration and execution risk could limit upside despite the strong demand outlook. Nebius: A Blowout Quarter Just Made Michael Burry's Short More Interesting

Wall Street Analyst Weigh In

A number of analysts recently weighed in on NBIS shares. Wolfe Research initiated coverage on shares of Nebius Group in a research note on Thursday, April 16th. They issued a "peer perform" rating on the stock. Wall Street Zen cut Nebius Group from a "sell" rating to a "strong sell" rating in a report on Saturday, August 8th. Zacks Research lowered Nebius Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 31st. Freedom Capital upgraded Nebius Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 20th. Finally, Robert W. Baird increased their price objective on Nebius Group from $250.00 to $340.00 and gave the stock an "outperform" rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $222.71.

Insider Activity

In other news, CEO Arkadiy Volozh sold 46,627 shares of the firm's stock in a transaction that occurred on 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 completion of the sale, the chief executive officer owned 821,662 shares of the company's stock, valued at approximately $193,460,317.90. This trade represents a 5.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Sanchez Maria Del Dado Alonso sold 1,509 shares of Nebius Group stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $276.20, for a total transaction of $416,785.80. Following the completion of the transaction, the chief financial officer owned 12,672 shares of the company's stock, valued at $3,500,006.40. This trade represents a 10.64% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 140,810 shares of company stock valued at $33,548,588.

Institutional Trading of Nebius Group

Several large investors have recently made changes to their positions in NBIS. Accel Leaders 4 Associates L.P. bought a new stake in Nebius Group during the 2nd quarter worth about $1,012,097,322,000. State Street Corp raised its stake in shares of Nebius Group by 2,391.3% in the fourth quarter. State Street Corp now owns 3,219,326 shares of the company's stock worth $269,474,000 after acquiring an additional 3,090,103 shares during the last quarter. Capital Research Global Investors acquired a new position in shares of Nebius Group during the fourth quarter worth approximately $231,635,000. Jennison Associates LLC grew its stake in shares of 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 purchasing an additional 2,283,676 shares during the last quarter. Finally, Accel Leaders 3 Associates L.P. bought a new stake in shares of Nebius Group during the second quarter valued at approximately $621,908,604,000. Institutional investors own 21.90% of the company's stock.

Nebius Group Price Performance

The company has a debt-to-equity ratio of 1.16, a current ratio of 8.33 and a quick ratio of 8.33. The firm has a market capitalization of $64.53 billion, a P/E ratio of 82.27 and a beta of 4.23. The company's 50 day moving average price is $221.63 and its 200 day moving average price is $166.23.

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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