Nebius Group (NASDAQ:NBIS) Shares Down 3.3% - Should You Sell?

Key Points

• Nebius shares fell 3.3% to $199.54 on heavy trading, bringing the stock below its 50-day moving average of $216.41 but still above its 200-day average of $179.08.
• The company’s AI infrastructure outlook remains strong, supported by a reported $37.5 billion backlog and 454% year-over-year quarterly revenue growth; its latest loss of $0.12 per share also beat analyst expectations.
• Risks include high valuation, rising financing costs, customer concentration, and roughly $20 billion in planned capital expenditures. Analysts remain moderately bullish overall, with a consensus target of $226, though some firms have downgraded the stock or assigned neutral ratings after its rally.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s stock price traded down 3.3% on Tuesday . The stock traded as low as $194.80 and last traded at $199.54. Approximately 10,760,900 shares were traded during trading, a decline of 40% from the average session volume of 17,961,080 shares. The stock had previously closed at $206.32.

Trending Headlines about Nebius Group

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

• Positive Sentiment: Demand for dedicated artificial-intelligence data centers continues to support the long-term growth outlook for Nebius and other AI infrastructure providers. A reported $37.5 billion backlog and marquee customer agreements offer significant future revenue visibility. Nebius vs. CoreWeave: Which Is the Better Artificial Intelligence Infrastructure Stock to Buy Right Now
• Positive Sentiment: Brokerages maintain an overall “Moderate Buy” recommendation, indicating that analysts generally see additional upside despite the stock’s rally and execution risks. Nebius Receives Average Recommendation of Moderate Buy
• Neutral Sentiment: Some investors favor IREN over Nebius based on differences in their latest earnings reports, highlighting that Nebius is being judged not only on industry growth but also on near-term financial execution. Why Investors Should Buy IREN Limited Over Nebius
• Negative Sentiment: A global bond selloff has pushed Treasury yields higher, increasing the implied cost of capital for companies funding large AI data-center expansions. That macro pressure has weighed on Nebius alongside more heavily indebted AI companies. Oracle Falls as Bond Selloff Tests AI Buildout; Nebius Slips
• Negative Sentiment: Investors face substantial execution risk: three customers reportedly account for nearly 60% of revenue, while approximately $20 billion in planned capital expenditures could pressure cash flow and increase financing needs. What to Understand Before Buying Nebius
• Negative Sentiment: A Seeking Alpha analysis downgraded Nebius after its sharp rally, reinforcing concerns that the valuation may have moved ahead of the company’s current earnings and that the stock may need a pause. Nebius Stock Deserves a Pause After Rally

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Zacks Research downgraded shares of Nebius Group from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 31st. Piper Sandler initiated coverage on Nebius Group in a report on Monday, August 3rd. They set a "neutral" rating and a $224.00 price target on the stock. BNP Paribas Exane assumed coverage on Nebius Group in a report on Tuesday, June 2nd. They issued a "neutral" rating and a $255.00 price objective for the company. Northland Securities boosted their target price on Nebius Group from $248.00 to $410.00 and gave the stock an "outperform" rating in a research report on Monday, July 20th. Finally, Wall Street Zen upgraded shares of Nebius Group from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 16th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Nebius Group presently has an average rating of "Moderate Buy" and an average target price of $226.00.

Nebius Group Price Performance

The firm has a 50-day simple moving average of $216.41 and a 200-day simple moving average of $179.08. The firm has a market capitalization of $50.49 billion, a PE ratio of -6,649.12 and a beta of 4.23. The company has a debt-to-equity ratio of 0.82, a current ratio of 4.03 and a quick ratio of 4.03.

Nebius Group (NASDAQ:NBIS - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, beating the consensus estimate of ($0.67) by $0.55. The firm had revenue of $582.30 million during the quarter, compared to analyst estimates of $567.91 million. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The business's revenue for the quarter was up 454% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.38 EPS. As a group, equities analysts forecast that Nebius Group N.V. will post -3.76 earnings per share for the current year.

Insider Buying and Selling at Nebius Group

In other Nebius Group news, insider Andrey Korolenko sold 33,871 shares of the company's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total value of $7,974,926.95. Following the completion of the sale, the insider owned 551,338 shares in the company, valued at $129,812,532.10. This represents a 5.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CTO Danila Shtan sold 16,937 shares of Nebius Group stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total value of $3,987,816.65. Following the transaction, the chief technology officer directly owned 274,763 shares in the company, valued at approximately $64,692,948.35. The trade was a 5.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 174,221 shares of company stock worth $42,871,270.

Hedge Funds Weigh In On Nebius Group

Several large investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System boosted its stake in shares of Nebius Group by 23,011.0% in the second quarter. California State Teachers Retirement System now owns 62,163,381 shares of the company's stock worth $17,167,661,000 after acquiring an additional 61,894,404 shares during the period. Situational Awareness LP bought a new position in shares of Nebius Group during the 2nd quarter valued at about $1,232,895,000. Accel Leaders 4 Associates L.P. purchased a new position in shares of Nebius Group during the second quarter valued at about $1,012,097,322. State Street Corp grew its position in shares of Nebius Group by 2,391.3% during the fourth quarter. State Street Corp now owns 3,219,326 shares of the company's stock valued at $269,474,000 after purchasing an additional 3,090,103 shares in the last quarter. Finally, Capital Research Global Investors purchased a new position in shares of Nebius Group during the fourth quarter valued at about $231,635,000. Hedge funds and other institutional investors own 21.90% of the company's stock.

About Nebius Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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