Nebius Group (NASDAQ:NBIS) Trading Down 7.8% - Here's Why

Key Points

• Nebius Group shares fell 7.8% on Tuesday, trading as low as $193.00 after closing at $210.51, with volume running above average.
• The decline came despite positive business news, including a more than $1 billion compute agreement with Reflection AI that could strengthen future revenue visibility and backlog.
• Analysts remain broadly constructive, with a Moderate Buy consensus and a $203.25 average price target, but the stock is still being pressured by concerns about high valuation, volatility, and broader AI sector profit-taking.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) shares fell 7.8% during trading on Tuesday . The company traded as low as $193.00 and last traded at $194.09. 17,618,731 shares traded hands during trading, an increase of 8% from the average daily volume of 16,337,734 shares. The stock had previously closed at $210.51.

Nebius Group News Roundup

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

• Positive Sentiment: Nebius announced a more than $1 billion compute agreement with Reflection AI, which should boost confidence in future revenue and backlog visibility. AI startup Reflection signs over $1 billion computing deal with Nebius
• Positive Sentiment: Commentary around Nebius’ “four-pronged strategy” highlighted expanding infrastructure, platform growth, record demand, and fresh capital, reinforcing the long-term growth story for the AI hyperscaler. Can Nebius' Four-Pronged Strategy Create the Next AI Hyperscaler?
• Neutral Sentiment: Several articles noted Nebius remains highly valued and volatile, so even strong contract news may be offset by broader profit-taking in high-multiple AI stocks. Blueprint for a Billion: Nebius Group Secures the AI Floor
• Neutral Sentiment: Market chatter also raised concerns that Meta could eventually lease spare cloud capacity, which could increase competition in the AI infrastructure market, though this is still speculative. Should Nebius and CoreWeave Investors Be Scared by Meta's Latest Plans?
• Negative Sentiment: Earlier weakness in NBIS was tied to broader concerns about AI valuation levels and competition fears, which may continue to pressure the stock despite the new contract news. Why Is Nebius Stock Falling on Monday?

Wall Street Analyst Weigh In

Several research analysts recently commented on NBIS shares. Wolfe Research started coverage on Nebius Group in a research note on Thursday, April 16th. They issued a "peer perform" rating on the stock. Citigroup increased their price objective on shares of Nebius Group from $169.00 to $287.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Cantor Fitzgerald assumed coverage on shares of Nebius Group in a report on Thursday, April 9th. They set an "overweight" rating and a $129.00 price target for the company. BWS Financial increased their price objective on Nebius Group from $130.00 to $200.00 and gave the stock a "buy" rating in a report on Monday, March 16th. Finally, Wall Street Zen raised Nebius Group from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Nine analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Nebius Group has a consensus rating of "Moderate Buy" and a consensus price target of $203.25.

Nebius Group Trading Down 7.8%

The company has a market cap of $49.11 billion, a PE ratio of 62.61 and a beta of 4.10. 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 business's 50-day simple moving average is $227.83 and its 200-day simple moving average is $150.65.

Nebius Group (NASDAQ:NBIS - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The company reported ($0.23) EPS for the quarter, topping the consensus estimate of ($0.81) by $0.58. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. The company had revenue of $399.00 million for the quarter, compared to analyst estimates of $375.13 million. The business's revenue for the quarter was up 684.0% on a year-over-year basis. As a group, analysts expect that Nebius Group N.V. will post -1.91 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director John Wilson Iv Boynton sold 5,812 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $253.29, for a total transaction of $1,472,121.48. Following the transaction, the director directly owned 378,665 shares in the company, valued at $95,912,057.85. The trade was a 1.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sanchez Maria Del Dado Alonso sold 1,509 shares of the stock in a transaction 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 approximately $3,500,006.40. This represents a 10.64% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 672,905 shares of company stock valued at $141,142,620 in the last quarter.

Hedge Funds Weigh In On Nebius Group

Institutional investors have recently added to or reduced their stakes in the company. Confluence Investment Management LLC grew its stake in Nebius Group by 2.0% during the second 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 lifted its holdings in Nebius Group by 2.7% during the 1st 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 buying an additional 79 shares in the last quarter. Wealth Alliance LLC increased its position in Nebius Group by 1.6% in 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 during the period. Aspen Grove Capital LLC lifted its holdings in Nebius Group by 3.7% in 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 period. Finally, Allied Private Wealth LLC bought a new position in shares of Nebius Group in the 2nd quarter worth $25,000. 21.90% of the stock is owned by institutional investors.

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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