Nebius Group (NASDAQ:NBIS) Stock Jumps 7.2% - Still a Buy?

Key Points

• Nebius shares rose 7.2% to $151.64 as AI data-center stocks rebounded after sector-wide financing jitters; trading volume was 15% below its average.
• The company is targeting $9 billion in annual recurring revenue for its AI cloud business, with major Microsoft and Meta agreements supporting growth. Reaching the target depends on expanding capacity and securing substantial funding, leaving debt-market and financing concerns as key risks.
• Analysts rate the stock a Moderate Buy, with an average price target of $243.25. Nebius’s latest quarterly revenue grew 454% year over year and exceeded estimates, though the company reported a loss per share.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s share price rose 7.2% on Tuesday. The stock traded as high as $152.67 and last traded at $151.64. 15,378,429 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 18,138,037 shares. The stock had previously closed at $141.39.

Nebius Group News Summary

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

• Positive Sentiment: NBIS joined a broader rebound in AI data-center stocks after a financing scare pressured the sector, helping lift sentiment around the group. Article: Applied Digital Surges as AI Data Center Stocks Rebound
• Positive Sentiment: Nebius is pursuing a $9 billion annual recurring revenue target for its AI cloud business and has major agreements with Microsoft and Meta. These deals support the growth case, though achieving the target depends on delivering capacity and securing funding. Article: Nebius Stock Is Down 30%. Could Its $9 Billion ARR Goal Spark a Rebound?
• Neutral Sentiment: A director sold 333 shares under a pre-arranged Rule 10b5-1 plan, a small 0.08% reduction in his holdings; the planned nature and limited size make the trade a modest signal. Article: Nebius Director Sells 333 Shares
• Negative Sentiment: Financing and debt-market concerns remain a headwind: Nebius’s expansion requires heavy investment and reliable access to capital. Recent bearish Seeking Alpha assessments—including a rating downgrade—add to caution around valuation and funding risks. Article: Nebius: Headlines Look Good But Debt Markets Signal Caution

Wall Street Analysts Forecast Growth

NBIS has been the subject of a number of research analyst reports. Northland Securities boosted 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. Rosenblatt Securities initiated coverage on Nebius Group in a research note on Thursday, October 8th. They set a "buy" rating and a $304.00 target price on the stock. BNP Paribas Exane raised Nebius Group from a "neutral" rating to an "outperform" rating and lifted their price target for the stock from $260.00 to $399.00 in a report on Thursday, September 24th. DA Davidson restated a "neutral" rating and issued a $175.00 price target on shares of Nebius Group in a research note on Thursday, August 13th. Finally, Freedom Capital raised Nebius Group from a "hold" rating to a "strong-buy" rating in a report on Monday, July 20th. Four analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $243.25.

Nebius Group Trading Up 7.2%

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 company has a market capitalization of $38.37 billion, a price-to-earnings ratio of -5,052.98 and a beta of 4.18. The business's 50-day moving average price is $208.15 and its two-hundred day moving average price is $177.05.

Nebius Group (NASDAQ:NBIS - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.67) by $0.55. The business had revenue of $582.30 million for the quarter, compared to the consensus estimate of $567.91 million. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The firm's quarterly revenue was up 454% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.38 earnings per share. Research analysts predict that Nebius Group N.V. will post -3.19 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Wilson Boynton sold 7,260 shares of the business's stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $177.63, for a total value of $1,289,593.80. Following the completion of the transaction, the director owned 403,522 shares of the company's stock, valued at $71,677,612.86. The trade was a 1.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Andrey Korolenko sold 29,090 shares of the company's stock in a transaction dated 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 sale, the insider directly owned 522,248 shares of the company's stock, valued at $122,289,591.68. This represents a 5.28% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have acquired 1,718 shares of company stock valued at $280,207 and have sold 158,823 shares valued at $38,168,832.

Institutional Trading of Nebius Group

Several large investors have recently made changes to their positions in the company. BlackRock Inc. lifted its stake in shares of Nebius Group by 16.0% in the 2nd quarter. BlackRock Inc. now owns 11,531,270 shares of the company's stock valued at $3,184,591,000 after purchasing an additional 1,593,684 shares during the period. Situational Awareness LP bought a new stake in shares of Nebius Group during the 2nd quarter valued at about $1,232,895,000. State Street Corp boosted its position in shares of Nebius Group by 16.2% during the 2nd quarter. State Street Corp now owns 4,069,875 shares of the company's stock valued at $1,123,977,000 after purchasing an additional 568,415 shares in the last quarter. Jennison Associates LLC grew its stake 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 purchasing an additional 2,283,676 shares during the period. Finally, Accel Leaders 4 Associates L.P. acquired a new stake in 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 N.V. is a technology company focused on providing cloud infrastructure and services for artificial intelligence and machine learning applications. Through its Nebius AI division, the company offers access to high-performance computing, graphics processing units (GPUs), storage, networking, and related tools designed to help businesses and developers train, deploy, and operate AI models.

The company also operates or supports other technology businesses, including Toloka, an AI data and evaluation platform; TripleTen, an online education provider focused on technology careers; and Avride, a developer of autonomous driving and delivery technologies.

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.