Nebius Group (NASDAQ:NBIS) Stock Price Down 17% - Here's Why

Key Points

• Nebius Group shares fell 17% on heavy trading volume, as investors reacted to renewed concerns about AI-sector competition and valuation rather than the company’s operating performance alone.
• Reports highlighted strong growth fundamentals, including record customer pipeline growth, rising AI infrastructure demand, and a recent earnings beat with revenue up 684% year over year.
• Despite the selloff, Wall Street remains mixed but constructive overall: the stock still has a Moderate Buy consensus, even as some analysts warn it may be looking overvalued after its recent run-up.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) was down 17% on Wednesday . The stock traded as low as $228.17 and last traded at $229.18. 30,262,122 shares changed hands during mid-day trading, an increase of 85% from the average daily volume of 16,359,946 shares. The stock had previously closed at $276.17.

Nebius Group News Summary

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

• Positive Sentiment: Nebius’ customer pipeline remains strong, with reports highlighting record pipeline growth, rising customer demand, and expanding AI infrastructure plans that could support future revenue growth. Will Nebius' Strong Customer Pipeline Drive Future Growth?
• Positive Sentiment: Some bullish commentary argues Meta’s large-scale AI spending reinforces the idea that demand for GPU compute remains robust, which could benefit Nebius as a cloud infrastructure provider. Nebius: Meta Clouds Signal Hidden AI Demand Surge
• Neutral Sentiment: Investors are also weighing recent analysis that Nebius may look overvalued after its earnings run-up, even though its AI growth story remains intact. Nebius Group (NBIS) Stock Looks Overvalued On Earnings While AI Growth Stays Strong
• Negative Sentiment: Shares in Nebius and other neocloud names fell after reports that Meta’s cloud expansion could intensify competition, raising concerns that one of Nebius’ biggest customers may also become a larger competitor. CoreWeave and Nebius shares slide after Meta cloud expansion report
• Negative Sentiment: Additional commentary said the market is questioning whether the “neocloud boom” can keep going, as Meta’s ambitions triggered selling across Nebius, CoreWeave, and IREN. Nebius, Coreweave, and IREN Tumble on Meta's Cloud Ambitions. Is This the End of the Neocloud Boom?
• Negative Sentiment: Technical weakness and valuation concerns are also pressuring the stock, with reports noting the share price has fallen below a key moving average and that AI fear is outweighing growth optimism in the near term. AI Fears Hit Nebius Stock, But Has the Growth Thesis Changed?

Analyst Upgrades and Downgrades

Several brokerages recently commented on NBIS. Morgan Stanley boosted their price target on Nebius Group from $126.00 to $144.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 14th. Wolfe Research began coverage on shares of Nebius Group in a research note on Thursday, April 16th. They set a "peer perform" rating on the stock. BWS Financial upped their target price on shares of Nebius Group from $130.00 to $200.00 and gave the stock a "buy" rating in a report on Monday, March 16th. BNP Paribas Exane initiated coverage on shares of Nebius Group in a research report on Tuesday, June 2nd. They issued a "neutral" rating and a $255.00 target price for the company. Finally, Bank of America boosted their price target on shares of Nebius Group from $240.00 to $280.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Nebius Group presently has an average rating of "Moderate Buy" and an average target price of $203.25.

Nebius Group Stock Down 17.0%

The company has a debt-to-equity ratio of 1.16, a quick ratio of 8.33 and a current ratio of 8.33. The business has a 50 day simple moving average of $215.92 and a 200-day simple moving average of $142.48. The firm has a market capitalization of $57.99 billion, a price-to-earnings ratio of 73.93 and a beta of 4.03.

Nebius Group (NASDAQ:NBIS - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share for the quarter, beating the consensus estimate of ($0.77) by $0.54. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. The firm had revenue of $399.00 million for the quarter, compared to analysts' expectations of $375.13 million. The company's revenue was up 684.0% on a year-over-year basis. On average, equities analysts expect that Nebius Group N.V. will post -1.91 EPS for the current year.

Insider Activity at Nebius Group

In other news, CTO Danila Shtan sold 15,678 shares of the business's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $238.96, for a total value of $3,746,414.88. Following the sale, the chief technology officer directly owned 291,700 shares of the company's stock, valued at approximately $69,704,632. The trade was a 5.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Marc Boroditsky sold 10,776 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $276.20, for a total transaction of $2,976,331.20. Following the completion of the transaction, the executive owned 26,886 shares in the company, valued at approximately $7,425,913.20. This represents a 28.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 626,887 shares of company stock valued at $124,696,143 over the last 90 days.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Orbis Allan Gray Ltd boosted its holdings 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 valued at $976,681,000 after purchasing an additional 1,949,708 shares during the period. Fred Alger Management LLC raised its holdings in Nebius Group by 33.4% during 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. lifted its position in shares of Nebius Group by 55.7% during the 3rd quarter. Jericho Capital Asset Management L.P. now owns 4,607,497 shares of the company's stock worth $517,284,000 after buying an additional 1,648,497 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Nebius Group by 35.2% in the 4th quarter. Morgan Stanley now owns 3,704,659 shares of the company's stock valued at $310,099,000 after buying an additional 964,984 shares in the last quarter. Finally, Clear Street Group Inc. boosted its holdings in shares of Nebius Group by 95.0% in the 4th quarter. Clear Street Group Inc. now owns 3,511,656 shares of the company's stock valued at $293,943,000 after buying an additional 1,710,924 shares in the last quarter. 21.90% of the stock is currently owned by institutional investors and hedge funds.

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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