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

Nebius Group N.V. (NASDAQ:NBIS)’s share price dropped 5.1% during trading on Wednesday. The stock traded as low as $234.03 and last traded at $237.15. 17,637,619 shares were traded during mid-day trading, an increase of 0% from the average session 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: Inferize acquisition supports AI inference growth. Nebius acquired Inferize to enhance its Token Factory inference platform, reduce “cold starts” and improve GPU utilization. Better utilization could increase capacity efficiency and support margins as AI workloads expand. Nebius Strengthens Token Factory With Inferize Acquisition
• Positive Sentiment: AI demand and customer commitments remain major catalysts. Reported contracts with Microsoft and Meta total approximately $32 billion, with potential additional commitments of up to $17 billion. The demand outlook, expanding capacity and improving profitability have helped drive a substantial year-to-date rally. Nebius Stock Surges 110% in Six Months
• Positive Sentiment: Technical momentum temporarily improved sentiment. NBIS rose about 8% Tuesday and moved above the $250 resistance area after reversing an earlier sell-off. The breakout attracted momentum-focused buyers, although the move has not eliminated volatility. Nebius Stock Jumps as Technical Breakout Puts $250 Level in Focus
• Neutral Sentiment: Partner-owned infrastructure could improve capital efficiency. Allowing partners to own some data-center infrastructure may reduce Nebius’ capital requirements, but sharing revenue and profits could limit the benefit to shareholders.
• Negative Sentiment: Insider selling is weighing on sentiment. COO Ophir Nave sold 500,000 shares under a preset trading plan, reportedly about half of his stake. CTO Danila Shtan also sold 14,546 shares for roughly $3.4 million. The planned nature of the transactions and continued insider ownership soften the signal, but the sales raise concerns after NBIS’s sharp run-up. Nebius CTO Sells Shares
• Negative Sentiment: Valuation risk remains significant. NBIS trades at a demanding valuation despite strong revenue growth and still-negative expected full-year earnings. Jim Cramer’s preference for CoreWeave over Nebius further highlights concerns that optimistic AI expectations may already be reflected in the stock. Jim Cramer Prefers CoreWeave Over Nebius

Analyst Ratings Changes

NBIS has been the topic of several recent research reports. BNP Paribas Exane raised Nebius Group from a “neutral” rating to an “outperform” rating and lifted their price objective for the stock from $260.00 to $399.00 in a report on Thursday, September 24th. Wall Street Zen raised Nebius Group from a “strong sell” rating to a “sell” rating in a research report on Sunday, August 16th. Zacks Research downgraded shares of Nebius Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 31st. Truist Financial raised Nebius Group to a “strong-buy” rating in a report on Thursday, September 10th. Finally, DA Davidson reaffirmed a “neutral” rating and set a $175.00 price objective on shares of Nebius Group in a research note on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Nebius Group has a consensus rating of “Moderate Buy” and a consensus target price of $241.80.

Nebius Group Price Performance

The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82. The stock has a market capitalization of $60.00 billion, a P/E ratio of -7,902.37 and a beta of 4.18. The company has a fifty day simple moving average of $222.12 and a two-hundred day simple moving average of $202.17.

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

Insider Buying and Selling

In other news, CEO Arkadiy Volozh sold 37,778 shares of Nebius Group stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $234.16, for a total transaction of $8,846,096.48. Following the transaction, the chief executive officer directly owned 785,236 shares of the company’s stock, valued at $183,870,861.76. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Danila Shtan sold 14,546 shares of Nebius Group stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $234.16, for a total value of $3,406,091.36. Following the transaction, the chief technology officer owned 260,217 shares in the company, valued at approximately $60,932,412.72. This represents a 5.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 166,616 shares of company stock valued at $39,753,038.

Institutional Inflows and Outflows

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

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.