Nebius Group (NASDAQ:NBIS) Stock Price Down 14.9% on Analyst Downgrade

Key Points

• Nebius shares fell 14.9% to $120.37 after Citigroup cut its price target from $324 to $265, while maintaining a Buy rating; trading volume was 153% above average.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $239.56, with 16 of 22 analysts rating the stock Buy or Strong Buy.
• The company reported quarterly revenue of $582.3 million, up 454% year over year, and a smaller-than-expected loss per share of $0.12. Its aggressive AI infrastructure expansion plans also carry execution and financing risks.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s stock price was down 14.9% on Thursday after Citigroup lowered their price target on the stock from $324.00 to $265.00. Citigroup currently has a buy rating on the stock. Nebius Group traded as low as $113.30 and last traded at $120.37. Approximately 46,319,103 shares changed hands during trading, an increase of 153% from the average session volume of 18,291,449 shares. The stock had previously closed at $141.52.

Other equities analysts also recently issued research reports about the company. William Blair initiated coverage on Nebius Group in a research report on Wednesday, September 30th. They set an "outperform" rating for the company. Zacks Research raised Nebius Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 19th. Freedom Capital raised shares of Nebius Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 20th. Wall Street Zen raised Nebius Group from a "strong sell" rating to a "sell" rating in a report on Sunday, August 16th. Finally, Piper Sandler dropped their price objective on shares of Nebius Group from $237.00 to $185.00 and set a "neutral" rating for the company in a research note on Wednesday, October 21st. Four equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $239.56.

Insider Buying and Selling at Nebius Group

In other news, Director Arne Grimme purchased 148 shares of Nebius Group stock in a transaction dated Wednesday, October 28th. The shares were bought at an average cost of $169.84 per share, for a total transaction of $25,136.32. Following the completion of the acquisition, the director owned 7,899 shares in the company, valued at approximately $1,341,566.16. This trade represents a 1.91% increase in their position. The acquisition was disclosed in a document filed 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 Wilson Boynton sold 333 shares of the firm's stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $173.07, for a total transaction of $57,632.31. Following the transaction, the director directly owned 403,189 shares of the company's stock, valued at $69,779,920.23. The trade was a 0.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have purchased 1,718 shares of company stock worth $280,207 and have sold 158,823 shares worth $38,168,832.

Trending Headlines about Nebius Group

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

• Positive Sentiment: Citigroup kept its Buy rating while lowering its price target to $265 from $324. The revised target still implies substantial potential upside, though it is not a guarantee of future performance. Article
• Positive Sentiment: Nebius is targeting $7 billion to $9 billion in annualized run-rate revenue by year-end 2026, up from $3 billion in June. Its growth ambitions and reported customer commitments support the longer-term opportunity, if the company can deliver the capacity on schedule. Article
• Neutral Sentiment: Nebius’s U.S. development footprint is outside Texas, reducing its direct exposure to potential Texas-specific permitting changes. However, investors are selling AI infrastructure stocks as a group, and tighter rules could affect projects beyond Texas. Article
• Negative Sentiment: Political and permitting risks are the clearest near-term headwinds: voters opposed data-center measures in 40 of 41 local ballots, raising concerns about whether large-scale expansion will face more resistance and delays. Article
• Negative Sentiment: The scale of the buildout adds execution and financing risk. Nebius expects to spend $20 billion to $25 billion this year, and an analysis of AI-cloud peers highlights concern over reliance on debt to fund capacity expansion. Article

Hedge Funds Weigh In On Nebius Group

A number of hedge funds have recently bought and sold shares of the company. Situational Awareness LP purchased a new position in Nebius Group in the second quarter valued at approximately $1,232,895,000. Accel Leaders 4 Associates L.P. purchased a new position in Nebius Group during the 2nd quarter valued at about $1,012,097,322. Jennison Associates LLC increased its holdings in Nebius Group by 134.3% during the 2nd quarter. Jennison Associates LLC now owns 3,983,899 shares of the company's stock worth $1,100,233,000 after acquiring an additional 2,283,676 shares during the period. Accel Leaders 3 Associates L.P. bought a new position in shares of Nebius Group in the second quarter worth $621,908,604. Finally, BlackRock Inc. increased its stake in Nebius Group by 16.0% in 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 own 21.90% of the company's stock.

Nebius Group Price Performance

The business's 50 day moving average is $205.35 and its two-hundred day moving average is $177.49. 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 firm has a market capitalization of $30.46 billion, a PE ratio of -4,011.00 and a beta of 4.63.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its quarterly earnings data 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. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The company had revenue of $582.30 million during the quarter, compared to the consensus estimate of $567.91 million. During the same period in the previous year, the firm posted $2.38 EPS. The firm's revenue was up 454% compared to the same quarter last year. As a group, research analysts anticipate that Nebius Group N.V. will post -3.19 EPS for the current year.

About Nebius Group

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.

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