Nebius Group (NASDAQ:NBIS) Shares Down 12.2% - Time to Sell?

Key Points

• Nebius shares fell 12.2% to $165.47 on unusually heavy volume, trading well below its 50-day and 200-day moving averages.
• The company reported strong operating momentum, with quarterly revenue up 454% year over year to $582.3 million and an adjusted loss narrower than analysts expected. Longer-term demand appears strong, supported by customer capacity requests extending into 2028 and a $775 million financing facility.
• Analyst sentiment is mixed: the consensus rating remains “Moderate Buy” with an average $245.69 price target, but targets range from $84 to $410. Insiders have also sold roughly $36.8 million of stock over the past 90 days, adding caution after the selloff.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) dropped 12.2% during trading on Friday. The company traded as low as $163.27 and last traded at $165.47. Approximately 34,601,296 shares were traded during trading, an increase of 93% from the average daily volume of 17,929,672 shares. The stock had previously closed at $188.41.

Key Headlines Impacting Nebius Group

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

• Positive Sentiment: Nebius continues to show stronger revenue generation and faster quarter-over-quarter growth than Innodata across the available periods, supporting the company’s long-term AI infrastructure story. Innodata vs. Nebius: Here's What Revenue Trends Tell Investors About These Artificial Intelligence Companies
• Positive Sentiment: Analysts note that customer capacity requests reportedly extend into 2028, while a $775 million secured financing facility could help fund expansion through contracted cash flows and reduce Nebius’ need for corporate capital. Its move into managed inference and newer infrastructure may also improve economics beyond basic GPU rental. Nebius: The Real Test Starts After This Selloff
• Positive Sentiment: Some market commentary identifies Nebius as a potential dip-buying opportunity because of strong AI demand and rapid revenue growth, although this view is speculative and countered by broader market risks. AI Stocks Bleed as Inflation Bites: Any Buying Opportunities?

Analysts Set New Price Targets

NBIS has been the topic of a number of research reports. Rothschild & Co Redburn started coverage on Nebius Group in a report on Monday, September 21st. They issued a "sell" rating and a $84.00 target price on the stock. BNP Paribas Exane upgraded shares of Nebius Group from a "neutral" rating to an "outperform" rating and increased their target price for the stock from $260.00 to $399.00 in a research report on Thursday, September 24th. Weiss Ratings cut Nebius Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday. Rosenblatt Securities began coverage on Nebius Group in a report on Thursday, October 8th. They set a "buy" rating and a $304.00 price target for the company. Finally, Northland Securities raised their price objective on shares of Nebius Group from $248.00 to $410.00 and gave the company an "outperform" rating in a research report on Monday, July 20th. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Nebius Group currently has a consensus rating of "Moderate Buy" and an average price target of $245.69.

Nebius Group Stock Down 12.2%

The company has a market cap of $41.87 billion, a price-to-earnings ratio of -5,513.83 and a beta of 4.18. The business has a 50-day simple moving average of $224.02 and a two-hundred day simple moving average of $206.95. The company has a quick ratio of 4.03, a current ratio of 4.03 and a debt-to-equity ratio of 0.82.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share for the quarter, topping the consensus estimate of ($0.67) by $0.55. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The firm had revenue of $582.30 million during the quarter, compared to analyst estimates of $567.91 million. During the same period in the previous year, the company earned $2.38 EPS. The company's revenue for the quarter was up 454% on a year-over-year basis. As a group, equities analysts forecast that Nebius Group N.V. will post -3.48 earnings per share for the current fiscal year.

Insider Transactions at Nebius Group

In other Nebius Group news, CRO Marc Boroditsky sold 7,000 shares of the business's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $211.23, for a total transaction of $1,478,610.00. Following the completion of the transaction, the executive owned 7,000 shares of the company's stock, valued at $1,478,610. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles Ryan sold 50,000 shares of the business's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $265.53, for a total value of $13,276,500.00. Following the transaction, the director directly owned 272,533 shares of the company's stock, valued at $72,365,687.49. This represents a 15.50% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 151,230 shares of company stock worth $36,821,606.

Institutional Investors Weigh In On Nebius Group

Institutional investors have recently modified their holdings of the business. Situational Awareness LP bought a new position in Nebius Group in the second quarter valued at approximately $1,232,895,000. Accel Leaders 4 Associates L.P. bought a new stake in Nebius Group in the second quarter valued at about $1,012,097,322. Jennison Associates LLC boosted its holdings in Nebius Group by 134.3% during the second quarter. Jennison Associates LLC now owns 3,983,899 shares of the company's stock worth $1,100,233,000 after buying an additional 2,283,676 shares during the last quarter. Accel Leaders 3 Associates L.P. bought a new stake in shares of Nebius Group in the 2nd quarter valued at about $621,908,604. Finally, BlackRock Inc. boosted its stake in Nebius Group by 16.0% during the 2nd quarter. BlackRock Inc. now owns 11,531,270 shares of the company's stock worth $3,184,591,000 after acquiring an additional 1,593,684 shares during the last quarter. Institutional investors and hedge funds own 21.90% of the company's stock.

Nebius Group Company Profile

Nebius Group N.V. is a technology company focused on artificial intelligence infrastructure and related services. Through its Nebius AI business, the company provides cloud-based computing infrastructure designed for developing, training and deploying machine-learning and generative AI applications, including access to accelerated computing, data storage, networking and managed cloud services.

The company also develops tools and services intended to support AI developers and businesses, including data and machine-learning infrastructure.

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