Nebius Group (NASDAQ:NBIS) Shares Down 5.1% – Here’s Why

Shares of Nebius Group N.V. (NASDAQ:NBIS) were down 5.1% during trading on Wednesday. The company traded as low as $234.03 and last traded at $237.15. 17,637,619 shares traded hands during mid-day trading, an increase of 0% from the average daily volume of 17,627,117 shares. The stock had previously closed at $249.87.

Key Nebius Group News

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

• Positive Sentiment: New bullish analyst coverage: Rosenblatt Securities initiated coverage with a Buy/Strong Buy rating and a price target of either $284 or $304, depending on the report, implying substantial upside from recent trading levels. William Blair also gave the shares an Outperform rating. Rosenblatt Launches Nebius Stock Coverage With Buy Rating and Bold Price Target Why This Wall Street Analyst Just Issued a Bold Prediction for Nebius Stock
• Positive Sentiment: Rapid AI-driven growth: Nebius is scaling specialized cloud infrastructure for AI training and deployment. Its latest quarterly revenue increased 454% year over year and exceeded analyst expectations, while the company has reportedly signed tens of billions of dollars in AI compute contracts. These trends strengthen the long-term growth case and help explain investor interest in the stock. Nebius Captures Pure-Play AI Investors Looking Beyond Mega Caps
• Neutral Sentiment: Strong but volatile investor interest: Nebius is attracting investors seeking a pure-play AI infrastructure company outside the largest technology stocks. Comparisons with CoreWeave, SoundHound AI and BigBear.ai highlight its exposure to the fast-growing AI theme, but do not provide new company-specific financial information. Better Cloud AI Pick: CoreWeave or Nebius Group?
• Negative Sentiment: Capital intensity and balance-sheet risk: Nebius reportedly spent about $11.14 billion on capital expenditures—roughly eight times annual revenue—to build AI capacity. Investors are questioning whether future contracts and pricing will generate adequate returns before additional financing needs or execution problems emerge. What is Nebius Group’s Economic Moat, and is it Widening or Narrowing?
• Negative Sentiment: Sector selloff and insider selling: Nebius declined alongside heavily financed AI infrastructure stocks as investors reduced exposure to companies borrowing aggressively to expand capacity. Separately, its COO reportedly sold 500,000 shares, adding an insider-confidence concern. CoreWeave Sinks as Financed AI Buildout Names Sell Off

Wall Street Analysts Forecast Growth

NBIS has been the topic of several analyst reports. Robert W. Baird increased their target price on Nebius Group from $250.00 to $340.00 and gave the stock an “outperform” rating in a research report on Thursday, August 13th. Freedom Capital raised shares of Nebius Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Wall Street Zen upgraded shares of Nebius Group from a “strong sell” rating to a “sell” rating in a research report on Sunday, August 16th. Northland Securities boosted their target price on shares of Nebius Group from $248.00 to $410.00 and gave the company an “outperform” rating in a research note on Monday, July 20th. Finally, Truist Financial upgraded shares of Nebius Group to a “strong-buy” rating in a research report on Thursday, September 10th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $245.69.

Nebius Group Stock Up 0.4%

The stock’s 50-day moving average is $224.52 and its 200-day moving average is $203.70. The stock has a market cap of $55.84 billion, a P/E ratio of -7,356.11 and a beta of 4.18. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82.

Nebius Group (NASDAQ:NBIS) last released its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, topping analysts’ consensus estimates of ($0.67) by $0.55. The company had revenue of $582.30 million for the quarter, compared to the consensus estimate of $567.91 million. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. Nebius Group’s revenue was up 454% on a year-over-year basis. During the same period in the previous year, the firm earned $2.38 EPS. As a group, research analysts anticipate that Nebius Group N.V. will post -3.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Danila Shtan sold 14,546 shares of the firm’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 $3,406,091.36. Following the completion of the transaction, the chief technology officer owned 260,217 shares of the company’s stock, valued at $60,932,412.72. This trade represents a 5.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Sanchez Maria Del Dado Alonso sold 470 shares of Nebius Group stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $196.00, for a total value of $92,120.00. Following the transaction, the chief financial officer directly owned 12,202 shares in the company, valued at approximately $2,391,592. The trade was a 3.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 166,616 shares of company stock valued at $39,753,038.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Confluence Investment Management LLC grew its position in Nebius Group by 2.0% in the second quarter. Confluence Investment Management LLC now owns 2,475 shares of the company’s stock worth $684,000 after acquiring an additional 48 shares in the last quarter. Eastern Bank raised its holdings in shares of Nebius Group by 66.3% during the 3rd quarter. Eastern Bank now owns 158 shares of the company’s stock valued at $37,000 after purchasing an additional 63 shares in the last quarter. Jasper Ridge Partners L.P. lifted its stake in shares of Nebius Group by 0.5% in the 2nd quarter. Jasper Ridge Partners L.P. now owns 16,132 shares of the company’s stock valued at $4,455,000 after purchasing an additional 74 shares during the last quarter. Ancora Advisors LLC lifted its stake in shares of Nebius Group by 18.8% in the 2nd quarter. Ancora Advisors LLC now owns 475 shares of the company’s stock valued at $131,000 after purchasing an additional 75 shares during the last quarter. Finally, N.E.W. Advisory Services LLC boosted its holdings in Nebius Group by 76.0% in the second quarter. N.E.W. Advisory Services LLC now owns 176 shares of the company’s stock worth $49,000 after purchasing an additional 76 shares in the last quarter. Institutional investors and hedge funds own 21.90% of the company’s stock.

About Nebius Group

Nebius Group N.V. is a technology company focused on artificial intelligence infrastructure and related services. Through its Nebius AI business, the company provides cloud-based computing infrastructure designed for developing, training and deploying machine-learning and generative AI applications, including access to accelerated computing, data storage, networking and managed cloud services.

The company also develops tools and services intended to support AI developers and businesses, including data and machine-learning infrastructure.