Nebius Group (NASDAQ:NBIS) Trading Down 5.9% - What's Next?

Key Points

• Nebius Group shares fell 5.9% on Thursday, with trading volume running about 50% above average as investors reacted to the selloff.
• Sentiment weakened after Meta’s AI cloud expansion plans raised concerns that a major customer could become a direct competitor, potentially pressuring Nebius and other neocloud providers.
• Despite the stock drop, Nebius has shown strong operating momentum: its latest quarter beat earnings and revenue estimates, and analysts still hold a consensus Moderate Buy rating with an average price target of $203.25.

Shares of Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) fell 5.9% during mid-day trading on Thursday . The stock traded as low as $207.30 and last traded at $215.62. Approximately 24,693,826 shares traded hands during mid-day trading, an increase of 50% from the average session volume of 16,430,836 shares. The stock had previously closed at $229.18.

Nebius Group News Summary

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

• Positive Sentiment: Nebius highlighted growing demand in its AI cloud business by celebrating the winners of its expanded AI Discovery Awards, which showcased startups using AI in healthcare and life sciences and may support Nebius’ positioning in high-value inference workloads. Nebius celebrates healthcare and life sciences innovators at expanded AI Discovery Awards
• Neutral Sentiment: Recent commentary says Nebius still has strong revenue growth and a record customer pipeline, but the stock is being evaluated against a lofty valuation as AI infrastructure names stay volatile. Will Nebius' Strong Customer Pipeline Drive Future Growth?
• Negative Sentiment: Meta’s reported plan to sell AI cloud capacity directly to external customers is seen as a direct competitive threat to Nebius and other neocloud providers, pressuring sentiment across the group. Why Meta's cloud business would be 'very bad' for these 2 companies
• Negative Sentiment: Several reports this week said Nebius fell sharply after Meta’s cloud expansion news, with investors worried that the company’s biggest customer could become a bigger competitor and squeeze future growth. Nebius stock is crashing, and it has its biggest customer to blame

Wall Street Analyst Weigh In

Several equities analysts recently commented on NBIS shares. Cantor Fitzgerald started coverage on Nebius Group in a research note on Thursday, April 9th. They issued an "overweight" rating and a $129.00 price objective on the stock. Morgan Stanley raised their price target on shares of Nebius Group from $126.00 to $144.00 and gave the company an "equal weight" rating in a report on Thursday, May 14th. Wall Street Zen upgraded shares of Nebius Group from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th. Weiss Ratings raised Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, May 20th. Finally, Bank of America boosted their price objective on shares of Nebius Group from $240.00 to $280.00 and gave the stock a "buy" rating in a 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 stock. According to MarketBeat, Nebius Group presently has a consensus rating of "Moderate Buy" and an average price target of $203.25.

Nebius Group Stock Down 5.9%

The company has a current ratio of 8.33, a quick ratio of 8.33 and a debt-to-equity ratio of 1.16. The company's fifty day simple moving average is $217.32 and its 200 day simple moving average is $143.43. The firm has a market capitalization of $54.56 billion, a P/E ratio of 69.56 and a beta of 4.10.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its quarterly earnings data 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. The business had revenue of $399.00 million for the quarter, compared to analysts' expectations of $375.13 million. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.Nebius Group's revenue was up 684.0% on a year-over-year basis. Research analysts expect that Nebius Group N.V. will post -1.91 EPS for the current year.

Insider Buying and Selling

In other news, insider Andrey Korolenko sold 500,000 shares of Nebius Group stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $203.24, for a total value of $101,620,000.00. Following the completion of the transaction, the insider owned 585,209 shares of the company's stock, valued at $118,937,877.16. The trade was a 46.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold 626,887 shares of company stock valued at $124,696,143 over the last ninety days.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NBIS. Confluence Investment Management LLC boosted its stake in shares of Nebius Group by 2.0% in the 2nd quarter. Confluence Investment Management LLC now owns 2,475 shares of the company's stock worth $684,000 after buying an additional 48 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its stake in shares of Nebius Group by 2.7% in the first quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 2,977 shares of the company's stock worth $309,000 after purchasing an additional 79 shares in the last quarter. Wealth Alliance LLC grew its position in shares of Nebius Group by 1.6% during the first quarter. Wealth Alliance LLC now owns 5,008 shares of the company's stock worth $520,000 after purchasing an additional 80 shares in the last quarter. Aspen Grove Capital LLC raised its position in shares of Nebius Group by 3.7% during the first quarter. Aspen Grove Capital LLC now owns 2,522 shares of the company's stock valued at $262,000 after buying an additional 89 shares during the last quarter. Finally, WPG Advisers LLC lifted its stake in Nebius Group by 3.6% in the 1st quarter. WPG Advisers LLC now owns 2,799 shares of the company's stock worth $290,000 after purchasing an additional 98 shares in the last quarter. Institutional investors own 21.90% of the company's stock.

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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