Nebius Group (NASDAQ:NBIS) Stock Price Down 1.6% After Earnings Miss

Nebius Group N.V. (NASDAQ:NBIS) traded down 1.6% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $247.38 and last traded at $255.04. 35,980,705 shares were traded during mid-day trading, an increase of 102% from the average daily volume of 17,777,354 shares. The stock had previously closed at $259.20.

The company reported ($0.68) EPS for the quarter, missing the consensus estimate of ($0.67) by ($0.01). The firm had revenue of $582.30 million during the quarter, compared to analyst estimates of $567.91 million. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. The firm’s quarterly revenue was up 454% on a year-over-year basis. During the same period last year, the business posted $2.38 earnings per share.

Key Headlines Impacting Nebius Group

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

• Positive Sentiment: Nebius reported second-quarter revenue of $582.3 million, up 454% year over year and above analyst expectations. AI-cloud revenue grew even faster, while annual recurring revenue reached approximately $3 billion. Nebius beats quarterly revenue estimates as AI demand fuels growth
• Positive Sentiment: Management highlighted strong demand for AI compute, a contracted backlog exceeding $40 billion, expanding power capacity and premium pricing opportunities. Customer prepayments and other financing arrangements may help fund infrastructure expansion without relying solely on new equity or debt. NBIS Q2 Earnings Call Puts 2027 Capacity and Pricing in Focus
• Positive Sentiment: The company agreed with Vantage Data Centers to deploy NVIDIA-powered AI infrastructure at a Newport, Wales, campus, expanding Nebius’ U.K. capacity and supporting demand for domestic and sovereign AI computing. Vantage Data Centers and Nebius Expand UK AI Infrastructure
• Neutral Sentiment: Technical analysts remain bullish after the breakout, and Robert W. Baird raised its price target to $340 with an outperform rating. However, DA Davidson reaffirmed a neutral rating with a substantially lower $175 target, underscoring disagreement over fair value.
• Negative Sentiment: The quarterly loss of $0.68 per share narrowly missed consensus, while full-year revenue guidance of $3.0 billion to $3.4 billion was not above the $3.4 billion analyst estimate. The company also continues to require heavy investment to convert its backlog into operating capacity.
• Negative Sentiment: At a very elevated sales multiple after the recent rally, NBIS is vulnerable to profit-taking and volatility. Analysts have also warned that rising debt, capital spending, customer concentration and execution risk could limit upside despite the strong demand outlook. Nebius: A Blowout Quarter Just Made Michael Burry’s Short More Interesting

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Morgan Stanley boosted their price objective on Nebius Group from $126.00 to $144.00 and gave the stock an “equal weight” rating in a report on Thursday, May 14th. Northland Securities lifted their price target on shares of Nebius Group from $248.00 to $410.00 and gave the stock an “outperform” rating in a research report on Monday, July 20th. Weiss Ratings downgraded shares of Nebius Group from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday. Robert W. Baird increased their price objective on shares of Nebius Group from $250.00 to $340.00 and gave the company an “outperform” rating in a report on Thursday. Finally, Citizens Jmp raised their price objective on shares of Nebius Group from $175.00 to $270.00 and gave the company a “market outperform” rating in a research note on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $222.71.

Insider Transactions at Nebius Group

In other news, CRO Marc Boroditsky sold 10,776 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $276.20, for a total transaction of $2,976,331.20. Following the completion of the transaction, the executive directly owned 26,886 shares in the company, valued at approximately $7,425,913.20. The trade was a 28.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Arkadiy Volozh sold 46,627 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total value of $10,978,327.15. Following the completion of the sale, the chief executive officer directly owned 821,662 shares of the company’s stock, valued at approximately $193,460,317.90. This trade represents a 5.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 140,810 shares of company stock valued at $33,548,588.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Nebius Group by 34,371.3% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 93,762 shares of the company’s stock worth $7,848,000 after acquiring an additional 93,490 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. bought a new position in Nebius Group in the fourth quarter valued at approximately $24,756,000. Lombard Odier Asset Management Switzerland SA bought a new position in Nebius Group in the first quarter valued at approximately $1,087,000. Geode Capital Management LLC increased its position in shares of Nebius Group by 1,095.7% during the 4th quarter. Geode Capital Management LLC now owns 2,046,799 shares of the company’s stock worth $169,840,000 after purchasing an additional 1,875,612 shares during the last quarter. Finally, HB Wealth Management LLC acquired a new position in shares of Nebius Group during the 1st quarter worth approximately $735,000. Institutional investors and hedge funds own 21.90% of the company’s stock.

Nebius Group Trading Down 1.6%

The company has a market cap of $64.53 billion, a P/E ratio of 82.27 and a beta of 4.23. The company has a current ratio of 8.33, a quick ratio of 8.33 and a debt-to-equity ratio of 1.16. The business has a 50 day moving average price of $221.63 and a 200-day moving average price of $166.23.

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.