Nebius Group (NASDAQ:NBIS) Shares Up 5% – Time to Buy?

Nebius Group N.V. (NASDAQ:NBIS) shot up 5% during mid-day trading on Tuesday . The stock traded as high as $195.60 and last traded at $193.23. Approximately 20,589,276 shares were traded during trading, an increase of 19% from the average session volume of 17,331,111 shares. The stock had previously closed at $184.11.

Key Stories 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

Analyst Ratings Changes

A number of research analysts recently weighed in on NBIS shares. Robert W. Baird lifted their target price on Nebius Group from $250.00 to $340.00 and gave the company an “outperform” rating in a report on Thursday. Bank of America raised their price objective on Nebius Group from $240.00 to $280.00 and gave the stock a “buy” rating in a report on Monday, June 8th. DA Davidson reaffirmed a “neutral” rating and issued a $175.00 price objective on shares of Nebius Group in a research note on Thursday. Northland Securities increased their target price 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. Finally, Morgan Stanley raised their price target on shares of Nebius Group from $126.00 to $144.00 and gave the company an “equal weight” rating in a report on Thursday, May 14th. One investment 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 company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $222.71.

Nebius Group Trading Down 1.4%

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 firm has a market cap of $64.68 billion, a price-to-earnings ratio of 81.38 and a beta of 4.23. The business has a 50 day moving average price of $221.63 and a 200-day moving average price of $166.23.

Nebius Group (NASDAQ:NBIS) last released its quarterly earnings results on Thursday, August 13th. The company reported ($0.68) EPS for the quarter, missing the consensus estimate of ($0.67) by ($0.01). The company had revenue of $582.30 million for the quarter, compared to analyst estimates of $567.91 million. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The business’s revenue was up 454% on a year-over-year basis. During the same period last year, the firm posted $2.38 earnings per share. As a group, research analysts expect that Nebius Group N.V. will post -3.91 EPS for the current fiscal year.

Insider Buying and Selling at Nebius Group

In related news, CEO Arkadiy Volozh sold 46,627 shares of Nebius Group stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total transaction of $10,978,327.15. Following the sale, the chief executive officer owned 821,662 shares of the company’s stock, valued at $193,460,317.90. The trade was a 5.37% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Danila Shtan sold 16,937 shares of Nebius Group stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $3,987,816.65. Following the sale, the chief technology officer directly owned 274,763 shares in the company, valued at $64,692,948.35. This trade represents a 5.81% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 140,810 shares of company stock valued at $33,548,588.

Institutional Trading of Nebius Group

Large investors have recently modified their holdings of the business. Accel Leaders 4 Associates L.P. purchased a new stake in shares of Nebius Group during the second quarter worth about $1,012,097,322,000. Kirtland Hills Capital Management LLC purchased a new position in Nebius Group in the second quarter valued at about $1,437,000. Accel Leaders 3 Associates L.P. acquired a new stake in Nebius Group during the 2nd quarter valued at approximately $621,908,604,000. Wealthfront Advisers LLC acquired a new stake in Nebius Group during the 2nd quarter valued at approximately $245,000. Finally, AlpInvest Partners B.V. purchased a new stake in Nebius Group during the 2nd quarter worth approximately $255,000. 21.90% of the stock is currently 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.