Nebius Group (NASDAQ:NBIS) Shares Gap Up - Should You Buy?

Key Points

• Nebius shares jumped sharply, opening at $149.72 versus a prior close of $134 and later trading around $154.78, amid strength in CoreWeave and expectations for strong upcoming sales growth.
• Investors are awaiting the company’s November 12 Q3 report, which could shed light on growth and expansion funding; concerns include high capital needs, potential dilution and execution risks.
• Analysts have a Moderate Buy consensus and an average price target of $246. Nebius’s latest reported quarter showed revenue up 454% year over year and earnings that beat estimates.

Shares of Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) gapped up before the market opened on Wednesday. The stock had previously closed at $134.00, but opened at $149.72. Nebius Group shares last traded at $154.7760, with a volume of 9,718,861 shares traded.

More Nebius Group News

Investors following NBIS have been watching these news items:

• Positive Sentiment: Premarket interest was buoyed by strength in CoreWeave and expectations that Nebius’s upcoming Q3 report could show sales growing more than sixfold. The move follows recent volatility in the AI-cloud sector. Article: NBIS stock jumps on CoreWeave boost and sales expectations
• Negative Sentiment: Investors are awaiting Nebius’s Q3 results, scheduled for November 12, amid concerns about the cost and financing of its expansion. The report may clarify growth, capital spending and funding needs after a broader selloff in neocloud stocks. Article: Nebius slides as AI infrastructure jitters persist ahead of earnings
• Negative Sentiment: Bearish analysis highlights Nebius’s high capital requirements, possible dilution, hardware-replacement risks and execution challenges, arguing that its valuation may still be demanding despite the stock’s decline. Article: Nebius earnings preview and valuation concerns

Analysts Set New Price Targets

Several research firms have weighed in on NBIS. BNP Paribas Exane upgraded shares of Nebius Group from a "neutral" rating to an "outperform" rating and upped their price objective for the company from $260.00 to $399.00 in a research note on Thursday, September 24th. Weiss Ratings lowered shares of Nebius Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, October 30th. William Blair began coverage on shares of Nebius Group in a report on Wednesday, September 30th. They set an "outperform" rating on the stock. Citigroup dropped their price target on shares of Nebius Group from $324.00 to $265.00 and set a "buy" rating on the stock in a research note on Wednesday, November 4th. Finally, Northland Securities increased their price objective on Nebius Group from $248.00 to $410.00 and gave the stock an "outperform" rating in a report on Monday, July 20th. Four investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $246.00.

Nebius Group Price Performance

The company has a debt-to-equity ratio of 0.82, a current ratio of 4.03 and a quick ratio of 4.03. The stock has a market capitalization of $39.70 billion, a P/E ratio of -5,234.36 and a beta of 4.63. The stock's fifty day moving average is $198.90 and its 200-day moving average is $178.10.

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, beating the consensus estimate of ($0.67) by $0.55. The company had revenue of $582.30 million for the quarter, compared to analyst estimates of $567.91 million. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The business's revenue was up 454% compared to the same quarter last year. During the same period last year, the company earned $2.38 earnings per share. On average, equities analysts anticipate that Nebius Group N.V. will post -3.19 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Arkadiy Volozh sold 37,778 shares of Nebius Group stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $234.16, for a total value of $8,846,096.48. Following the transaction, the chief executive officer owned 785,236 shares of the company's stock, valued at $183,870,861.76. This trade represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Andrey Korolenko sold 29,090 shares of the business's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $234.16, for a total transaction of $6,811,714.40. Following the completion of the sale, the insider owned 522,248 shares of the company's stock, valued at $122,289,591.68. The trade was a 5.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders purchased 1,718 shares of company stock worth $280,207 and sold 158,823 shares worth $38,168,832.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. lifted its position in shares of 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 purchasing an additional 1,593,684 shares during the last quarter. Situational Awareness LP bought a new position in Nebius Group in the 2nd quarter worth approximately $1,232,895,000. State Street Corp increased its position in Nebius Group by 16.2% in the 2nd quarter. State Street Corp now owns 4,069,875 shares of the company's stock worth $1,123,977,000 after buying an additional 568,415 shares during the period. Jennison Associates LLC lifted its holdings in shares of 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. Finally, Accel Leaders 4 Associates L.P. acquired a new position in shares of Nebius Group during the second quarter worth approximately $1,012,097,322. Institutional investors and hedge funds own 21.90% of the company's stock.

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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