Nebius Group (NASDAQ:NBIS) Shares Gap Up on Strong Earnings

Nebius Group N.V. (NASDAQ:NBIS)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $193.23, but opened at $226.00. Nebius Group shares last traded at $230.9770, with a volume of 16,799,671 shares trading hands.

The company reported ($0.12) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.67) by $0.55. Nebius Group had a net margin of 4.55% and a negative return on equity of 7.33%. The firm had revenue of $582.30 million for the quarter, compared to analysts’ expectations of $567.91 million. During the same period in the prior year, the company earned $2.38 EPS. The business’s revenue was up 454% compared to the same quarter last year.

Key Nebius Group News

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

• Positive Sentiment: Exceptional Q2 growth: Revenue rose 454% year over year to $582.3 million, exceeding analyst expectations, while AI-cloud revenue increased roughly 500% and annualized run-rate revenue reached approximately $3 billion. Nebius beats quarterly revenue estimates as AI demand fuels growth
• Positive Sentiment: Strong demand visibility: Nebius reportedly has a backlog exceeding $40 billion, rising contracted-power guidance of 5 gigawatts and four large AI customer agreements, supporting expectations for substantial future capacity growth. Nebius Surges 34% Post Q2: Will $40B Backlog Power Further Growth?
• Positive Sentiment: Improved funding model: Customer prepayments, cheaper debt financing and an asset-light capacity strategy could reduce the capital burden of expanding AI infrastructure. Management is also keeping some 2027 capacity uncommitted to preserve pricing power. Nebius Has Found a New Way to Finance AI Infrastructure
• Positive Sentiment: Expansion continues: Nebius and Vantage Data Centers agreed to deploy NVIDIA-powered AI infrastructure in Wales, expanding the company’s presence in the UK and addressing regional demand for domestic compute capacity. Vantage Data Centers and Nebius Expand UK AI Infrastructure

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on NBIS shares. Wall Street Zen lowered Nebius Group from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 8th. Zacks Research downgraded Nebius Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 31st. Wolfe Research began coverage on Nebius Group in a report on Thursday, April 16th. They set a “peer perform” rating on the stock. Northland Securities raised their price target on Nebius Group from $248.00 to $410.00 and gave the stock an “outperform” rating in a research report on Monday, July 20th. Finally, Bank of America raised their price target on Nebius Group from $240.00 to $280.00 and gave the stock a “buy” rating in a research report on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $222.71.

Insider Buying and Selling

In other Nebius Group news, CRO Marc Boroditsky sold 10,776 shares of the company’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $276.20, for a total value of $2,976,331.20. Following the transaction, the executive owned 26,886 shares of the company’s stock, valued at $7,425,913.20. This represents a 28.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CTO Danila Shtan sold 16,937 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total value of $3,987,816.65. Following the completion of the sale, the chief technology officer owned 274,763 shares in the company, valued at approximately $64,692,948.35. The trade was a 5.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 136,310 shares of company stock worth $32,569,613 over the last ninety days.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in NBIS. Allied Private Wealth LLC purchased a new stake in Nebius Group in the 2nd quarter valued at about $25,000. Parkside Financial Bank & Trust bought a new position in Nebius Group in the 4th quarter worth about $25,000. Root Financial Partners LLC purchased a new position in shares of Nebius Group during the fourth quarter worth approximately $26,000. SHP Wealth Management purchased a new position in shares of Nebius Group during the fourth quarter worth approximately $26,000. Finally, Sound Income Strategies LLC raised its stake in shares of Nebius Group by 62.5% during the first quarter. Sound Income Strategies LLC now owns 260 shares of the company’s stock valued at $27,000 after acquiring an additional 100 shares in the last quarter. Hedge funds and other institutional investors own 21.90% of the company’s stock.

Nebius Group Stock Down 1.6%

The company has a quick ratio of 8.33, a current ratio of 8.33 and a debt-to-equity ratio of 1.16. The stock has a market cap of $64.53 billion, a P/E ratio of -8,498.50 and a beta of 4.23. The company’s 50 day moving average price is $221.54 and its two-hundred day moving average price is $167.36.

Nebius Group Company Profile

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability.