Nebius Group (NASDAQ:NBIS) Shares Gap Down - What's Next?

Key Points

• Nebius shares plunged, opening at $119.94 versus the prior close of $154.69, and last traded around $123.53.
• The company reported strong AI-driven results: Q3 revenue surged 571% year over year to $980.8 million, beating expectations, and EPS of $0.31 topped forecasts for a loss.
• Despite the earnings beat, investors may be concerned about the cost of expansion: Nebius plans $7.3 billion in AI infrastructure spending, while its 2027 revenue forecast of $12 billion–$13 billion leaves uncertainty about growth and financing. Analysts’ average rating remains “Moderate Buy,” with a $246 price target.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) shares gapped down prior to trading on Thursday. The stock had previously closed at $154.69, but opened at $119.94. Nebius Group shares last traded at $123.5280, with a volume of 26,707,945 shares traded.

Top Nebius Group Stories

Here are a few of the latest stories about NBIS:

• Positive Sentiment: Q3 revenue rose 571% year over year to $980.8 million, above analysts’ expectations, while EPS of $0.31 beat consensus forecasts for a loss. Adjusted EBITDA was $465.8 million, reflecting robust demand for AI computing. Reuters report on Nebius earnings
• Neutral Sentiment: Nebius forecast 2027 revenue of $12 billion to $13 billion, a range whose midpoint is slightly above the $12.3 billion consensus estimate. However, the wide range leaves uncertainty about the pace of future growth. Wall Street Journal outlook report
• Negative Sentiment: Heavy investment in AI infrastructure—reported at $7.3 billion for property and equipment—adds to investor concerns about financing the buildout. Weakness across other neocloud stocks may also be weighing on NBIS. Invezz analysis of the stock decline

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Robert W. Baird upped their price target on Nebius Group from $250.00 to $340.00 and gave the stock an "outperform" rating in a research note on Thursday, August 13th. William Blair began coverage on Nebius Group in a research note on Wednesday, September 30th. They set an "outperform" rating for the company. DA Davidson reissued a "neutral" rating and issued a $175.00 target price on shares of Nebius Group in a report on Thursday, August 13th. Weiss Ratings cut Nebius Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, October 30th. Finally, Citigroup cut their target price on Nebius Group from $324.00 to $265.00 and set a "buy" rating on the stock in a research note on Wednesday, November 4th. Four equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $246.00.

Nebius Group Price Performance

The firm's fifty day simple moving average is $198.00 and its 200-day simple moving average is $178.40. The firm has a market capitalization of $32.29 billion, a PE ratio of -4,266.58 and a beta of 4.63. 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 quarterly earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, beating analysts' consensus estimates of ($0.67) by $0.55. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The firm had revenue of $582.30 million for the quarter, compared to analysts' expectations of $567.91 million. During the same quarter in the prior year, the company posted $2.38 earnings per share. The business's revenue for the quarter was up 454% on a year-over-year basis. On average, research analysts forecast that Nebius Group N.V. will post -3.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Nebius Group

In other Nebius Group news, CRO Marc Boroditsky sold 7,000 shares of Nebius Group stock in a transaction on Monday, October 12th. The stock was sold at an average price of $211.23, for a total value of $1,478,610.00. Following the completion of the sale, the executive owned 7,000 shares of the company's stock, valued at approximately $1,478,610. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Arne Grimme purchased 148 shares of the firm's stock in a transaction dated Wednesday, October 28th. The stock was acquired at an average price of $169.84 per share, with a total value of $25,136.32. Following the purchase, the director directly owned 7,899 shares of the company's stock, valued at approximately $1,341,566.16. The trade was a 1.91% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have acquired 1,718 shares of company stock worth $280,207 and have sold 158,823 shares worth $38,168,832.

Institutional Investors Weigh In On Nebius Group

Several institutional investors have recently modified their holdings of the business. Fort Sheridan Advisors LLC lifted its stake in Nebius Group by 10.9% during the 3rd quarter. Fort Sheridan Advisors LLC now owns 1,016 shares of the company's stock valued at $240,000 after acquiring an additional 100 shares during the period. E Fund Management Hong Kong Co. Ltd. grew its stake in shares of Nebius Group by 63.9% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 2,584 shares of the company's stock worth $610,000 after acquiring an additional 1,007 shares during the period. Rathbones Group PLC grew its stake in shares of Nebius Group by 4.5% in the third quarter. Rathbones Group PLC now owns 2,411 shares of the company's stock worth $569,000 after acquiring an additional 104 shares during the period. Advisors Asset Management Inc. bought a new stake in shares of Nebius Group in the third quarter worth approximately $839,000. Finally, Greenline Wealth Management LLC raised its holdings in shares of Nebius Group by 16.2% during the third quarter. Greenline Wealth Management LLC now owns 6,493 shares of the company's stock valued at $1,532,000 after purchasing an additional 905 shares during the last quarter. 21.90% of the stock is owned by hedge funds and other institutional investors.

Nebius Group Company Profile

Nebius Group is a technology company focused on building infrastructure for artificial intelligence. Its core business, Nebius, offers cloud computing services and access to accelerated computing resources designed to help developers and organizations train and run AI models. The company also has businesses in areas including data services for AI, autonomous mobility and online education. Based in Amsterdam, Nebius serves customers internationally and is developing data center and computing capacity to support its AI cloud services.

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