Nebius Group (NASDAQ:NBIS) Trading Down 7.9% - What's Next?

Key Points

• Nebius shares fell 7.9% intraday to about $106 on heavy but below‑average turnover (~13.3M shares) amid amplified intraday swings from short‑squeeze chatter and high retail/institutional interest.
• Wall Street is divided: several firms (including Bank of America and multiple buy ratings) support the stock with an average target of $157.09, while institutional buying has increased and ownership sits around 21.9%.
• Material fundamental risks persist — the company missed last quarter’s revenue and EPS

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s stock price dropped 7.9% during mid-day trading on Thursday . The stock traded as low as $105.41 and last traded at $105.97. Approximately 13,295,756 shares were traded during trading, a decline of 11% from the average daily volume of 15,015,734 shares. The stock had previously closed at $115.09.

Key Nebius Group News

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

• Positive Sentiment: Bank of America initiated coverage and other firms refreshed price targets, adding institutional support and a near-term buy narrative for NBIS. Nebius Group NASDAQ: NBIS Coverage Initiated at Bank of America
• Positive Sentiment: Major commercial validation: recent coverage and analysis highlight large Meta and NVIDIA commercial relationships and backlog claims that underpin multi‑year revenue visibility and high price‑target scenarios. Nebius: Meta And Nvidia Deals Plus New Capital Close...
• Positive Sentiment: Product momentum: Nebius launched AI Cloud 3.5 with serverless features aimed at lowering developer friction — a strategic product step that could help monetize capacity faster. Nebius AI Cloud 3.5 Introduces Serverless AI...
• Positive Sentiment: Short‑squeeze discussion and high retail/institutional interest are amplifying intraday swings and buying interest in some forums. Nebius: Short Squeeze Potential Is Mounting
• Neutral Sentiment: Analyst comparison pieces frame NBIS alongside CoreWeave — highlighting exceptional revenue growth but contrasting capital models; useful for relative valuation work rather than immediate directional guidance. Nebius vs. CoreWeave: Which AI Cloud Stock is the Better Bet?
• Neutral Sentiment: Valuation/positioning debate: some analysts argue NBIS is mispriced by association with peers; capacity sell‑outs and ARR momentum are cited but are balanced against capital structure differences. Nebius: Mispriced By Association
• Negative Sentiment: Profitability and financing concerns remain: articles flag heavy operating spend, ongoing losses, recent quarter revenue/EPS misses versus estimates, and sizable convertible debt — factors that raise execution and dilution risk. Nebius vs. CoreWeave: Which AI Cloud Stock is the Better Bet?

Wall Street Analyst Weigh In

A number of brokerages have weighed in on NBIS. Weiss Ratings lowered Nebius Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, January 15th. Freedom Capital upgraded Nebius Group to a "strong-buy" rating in a research report on Tuesday, February 3rd. Compass Point started coverage on Nebius Group in a report on Wednesday, February 18th. They set a "buy" rating and a $150.00 price objective for the company. BWS Financial upped their price objective 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. Finally, DA Davidson raised their target price on shares of Nebius Group from $150.00 to $200.00 and gave the company a "buy" rating in a research note on Monday, March 16th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $157.09.

Nebius Group Stock Down 7.9%

The company has a quick ratio of 6.57, a current ratio of 3.08 and a debt-to-equity ratio of 0.89. The stock has a 50-day simple moving average of $100.07 and a two-hundred day simple moving average of $101.13. The firm has a market cap of $26.68 billion, a PE ratio of -72.58 and a beta of 4.02.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted 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). The firm had revenue of $227.70 million during the quarter, compared to analysts' expectations of $246.05 million. Nebius Group had a negative return on equity of 11.70% and a net margin of 19.02%. Analysts expect that Nebius Group N.V. will post -1.1 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of NBIS. Orbis Allan Gray Ltd lifted its holdings in shares of Nebius Group by 12.4% in the 2nd quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company's stock worth $976,681,000 after acquiring an additional 1,949,708 shares during the last quarter. Fred Alger Management LLC raised its position in Nebius Group by 33.4% in the 3rd 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 during the period. Jericho Capital Asset Management L.P. raised its position in Nebius Group by 55.7% in 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 purchasing an additional 1,648,497 shares during the period. Morgan Stanley lifted 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 during the last quarter. Finally, Invesco Ltd. boosted its position in Nebius Group by 2.7% during the second quarter. Invesco Ltd. now owns 3,587,811 shares of the company's stock valued at $198,514,000 after buying an additional 92,710 shares during the period. 21.90% of the stock is currently 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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