Nebius Group (NASDAQ:NBIS) Shares Down 17% – Here’s Why

Nebius Group N.V. (NASDAQ:NBIS) shares dropped 17% during trading on Wednesday . The company traded as low as $228.17 and last traded at $229.18. Approximately 30,262,122 shares changed hands during trading, an increase of 85% from the average daily volume of 16,359,946 shares. The stock had previously closed at $276.17.

Key Stories Impacting Nebius Group

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

• Positive Sentiment: Nebius’ customer pipeline remains strong, with reports highlighting record pipeline growth, rising customer demand, and expanding AI infrastructure plans that could support future revenue growth. Will Nebius’ Strong Customer Pipeline Drive Future Growth?
• Positive Sentiment: Some bullish commentary argues Meta’s large-scale AI spending reinforces the idea that demand for GPU compute remains robust, which could benefit Nebius as a cloud infrastructure provider. Nebius: Meta Clouds Signal Hidden AI Demand Surge
• Neutral Sentiment: Investors are also weighing recent analysis that Nebius may look overvalued after its earnings run-up, even though its AI growth story remains intact. Nebius Group (NBIS) Stock Looks Overvalued On Earnings While AI Growth Stays Strong
• Negative Sentiment: Shares in Nebius and other neocloud names fell after reports that Meta’s cloud expansion could intensify competition, raising concerns that one of Nebius’ biggest customers may also become a larger competitor. CoreWeave and Nebius shares slide after Meta cloud expansion report
• Negative Sentiment: Additional commentary said the market is questioning whether the “neocloud boom” can keep going, as Meta’s ambitions triggered selling across Nebius, CoreWeave, and IREN. Nebius, Coreweave, and IREN Tumble on Meta’s Cloud Ambitions. Is This the End of the Neocloud Boom?
• Negative Sentiment: Technical weakness and valuation concerns are also pressuring the stock, with reports noting the share price has fallen below a key moving average and that AI fear is outweighing growth optimism in the near term. AI Fears Hit Nebius Stock, But Has the Growth Thesis Changed?

Analysts Set New Price Targets

A number of brokerages recently weighed in on NBIS. BNP Paribas Exane initiated coverage on shares of Nebius Group in a research note on Tuesday, June 2nd. They set a “neutral” rating and a $255.00 price target for the company. Cantor Fitzgerald began coverage on shares of Nebius Group in a research note on Thursday, April 9th. They set an “overweight” rating and a $129.00 target price for the company. Weiss Ratings raised Nebius Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, May 20th. Wall Street Zen upgraded Nebius Group from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Finally, BWS Financial upped their price objective on Nebius Group from $130.00 to $200.00 and gave the company a “buy” rating in a research note on Monday, March 16th. Nine analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $203.25.

Nebius Group Price Performance

The company has a market cap of $57.99 billion, a price-to-earnings ratio of 73.93 and a beta of 4.03. The company’s 50 day moving average price is $215.92 and its 200 day moving average price is $142.48. The company has a current ratio of 8.33, a quick ratio of 8.33 and a debt-to-equity ratio of 1.16.

Nebius Group (NASDAQ:NBIS) last issued its quarterly earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.77) by $0.54. The business had revenue of $399.00 million for the quarter, compared to analyst estimates of $375.13 million. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. The firm’s revenue for the quarter was up 684.0% on a year-over-year basis. Equities research analysts forecast that Nebius Group N.V. will post -1.91 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Elena Bunina sold 10,894 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $206.87, for a total value of $2,253,641.78. Following the completion of the sale, the director directly owned 10,772 shares of the company’s stock, valued at $2,228,403.64. This trade represents a 50.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Danila Shtan sold 15,678 shares of Nebius Group stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $238.96, for a total value of $3,746,414.88. Following the completion of the sale, the chief technology officer owned 291,700 shares in the company, valued at approximately $69,704,632. This trade represents a 5.10% decrease in their ownership of the stock. 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 90 days, insiders have sold 626,887 shares of company stock worth $124,696,143.

Hedge Funds Weigh In On Nebius Group

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Parkside Financial Bank & Trust purchased a new position in shares of Nebius Group in the 4th quarter valued at about $25,000. Root Financial Partners LLC purchased a new stake in Nebius Group during the fourth quarter worth about $26,000. SHP Wealth Management acquired a new position in Nebius Group during the fourth quarter worth about $26,000. Sound Income Strategies LLC grew its position in Nebius Group by 62.5% during the first quarter. Sound Income Strategies LLC now owns 260 shares of the company’s stock worth $27,000 after buying an additional 100 shares during the period. Finally, Blue Trust Inc. increased its holdings in Nebius Group by 73.8% in the fourth quarter. Blue Trust Inc. now owns 332 shares of the company’s stock valued at $28,000 after buying an additional 141 shares in the last quarter. 21.90% of the stock is owned by institutional investors and hedge funds.

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.