Nebius Group (NASDAQ:NBIS) Stock Falls 16.8% – Should You Sell?

Nebius Group N.V. (NASDAQ:NBIS)’s stock price dropped 16.8% during mid-day trading on Thursday. The company traded as low as $118.81 and last traded at $128.64. Approximately 68,389,068 shares were traded during trading, an increase of 266% from the average session volume of 18,690,281 shares. The stock had previously closed at $154.69.

Key Nebius Group News

Investors following NBIS have been watching these news items:

• Positive Sentiment: Third-quarter revenue rose 571% year over year to $980.8 million, ahead of expectations, while adjusted EBITDA reached $465.8 million and adjusted net income was $90.9 million. Management says AI demand remains strong. Reuters article
• Neutral Sentiment: The 2027 revenue outlook is $12 billion–$13 billion, broadly around analyst expectations. That supports the longer-term growth story, though delivery will depend on expanding infrastructure as planned. 2027 outlook article
• Negative Sentiment: Investors are also weighing the substantial capital required to build out AI infrastructure and questions about how Nebius will finance that expansion. That spending and the capacity delays appear to be outweighing the quarterly beat for now. Wall Street Journal article

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on NBIS shares. Robert W. Baird boosted their target price on Nebius Group from $250.00 to $340.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Truist Financial raised shares of Nebius Group to a “strong-buy” rating in a research note on Thursday, September 10th. Rothschild & Co Redburn began coverage on shares of Nebius Group in a report on Monday, September 21st. They issued a “sell” rating and a $84.00 price objective on the stock. Freedom Capital upgraded shares of Nebius Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Finally, Citigroup cut their price objective on shares of Nebius Group from $324.00 to $265.00 and set a “buy” rating on the stock in a research report on Wednesday, November 4th. Four equities research 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 assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $246.00.

Nebius Group Trading Down 16.8%

The firm has a market cap of $32.55 billion, a price-to-earnings ratio of -4,286.57 and a beta of 4.63. 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 business has a 50-day moving average of $198.00 and a 200-day moving average of $178.40.

Nebius Group (NASDAQ:NBIS) last issued its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, beating the consensus estimate of ($0.67) by $0.55. The firm had revenue of $582.30 million during the quarter, compared to analysts’ expectations 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 quarterly revenue was up 454% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.38 earnings per share. Research analysts anticipate that Nebius Group N.V. will post -3.19 EPS for the current year.

Insider Activity

In related news, Director Wilson Boynton sold 333 shares of the business’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 in the company, valued at approximately $69,779,920.23. The trade was a 0.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Arne Grimme purchased 148 shares of the company’s stock in a transaction on Wednesday, October 28th. The shares were purchased at an average cost of $169.84 per share, for a total transaction of $25,136.32. Following the completion of the transaction, the director directly owned 7,899 shares of the company’s stock, valued at approximately $1,341,566.16. This represents a 1.91% increase in their position. The disclosure for this purchase is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders purchased 1,718 shares of company stock valued at $280,207 and sold 158,823 shares valued at $38,168,832.

Institutional Trading of Nebius Group

A number of large investors have recently added to or reduced their stakes in NBIS. Benjamin Edwards Inc. acquired a new position in shares of Nebius Group during the 3rd quarter worth about $2,178,000. NWK Group Inc. bought a new position in Nebius Group during the third quarter worth about $208,000. Fort Sheridan Advisors LLC grew its holdings in Nebius Group by 10.9% during the third quarter. Fort Sheridan Advisors LLC now owns 1,016 shares of the company’s stock worth $240,000 after purchasing an additional 100 shares during the period. E Fund Management Hong Kong Co. Ltd. increased its position in Nebius Group by 63.9% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 2,584 shares of the company’s stock worth $610,000 after buying an additional 1,007 shares during the last quarter. Finally, Rathbones Group PLC increased its position in Nebius Group by 4.5% during the third quarter. Rathbones Group PLC now owns 2,411 shares of the company’s stock worth $569,000 after buying an additional 104 shares during the last quarter. Institutional investors and hedge funds own 21.90% of the company’s stock.

About Nebius Group

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.