Nebius Group (NASDAQ:NBIS) Shares Down 7.4% – Here’s What Happened

Nebius Group N.V. (NASDAQ:NBIS) shares fell 7.4% on Thursday. The stock traded as low as $217.73 and last traded at $219.71. 21,509,358 shares were traded during mid-day trading, an increase of 22% from the average session volume of 17,667,910 shares. The stock had previously closed at $237.15.

Key Nebius Group News

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

• Positive Sentiment: Rosenblatt Securities initiated coverage with a Buy/Strong Buy rating and a price target between $284 and $304, implying substantial upside from recent trading levels. The analyst’s view adds institutional validation to Nebius’ AI-cloud growth strategy. Rosenblatt Launches Nebius Stock Coverage With Buy Rating and Bold Price Target
• Positive Sentiment: Nebius continues to attract investor attention as a pure-play AI infrastructure company. Its latest quarter delivered 454% year-over-year revenue growth and exceeded analyst expectations, while the company has reportedly signed tens of billions of dollars in AI-compute contracts. Nebius Captures Pure-Play AI Investors Looking Beyond Mega Caps
• Neutral Sentiment: Recent comparisons with CoreWeave, Cerebras Systems, SoundHound AI and BigBear.ai highlight Nebius’ rapid growth and full-stack AI-cloud positioning, but also emphasize that investors must weigh future profitability, cash burn and valuation. Cerebras Systems vs. Nebius Group
• Neutral Sentiment: Reported short-interest data showed zero shares sold short as of October 9, producing a 0.0-day short-interest ratio. That suggests short covering is not a meaningful explanation for the stock’s recent movement, although the data may warrant verification because it conflicts with the report’s wording about a large increase in short interest.
• Negative Sentiment: Investors remain concerned that Nebius is spending heavily to build AI capacity. Capital expenditures reportedly reached $11.14 billion—about eight times annual revenue—raising questions about cash burn, financing needs and whether the company can establish a durable economic moat. What is Nebius Group’s Economic Moat?
• Negative Sentiment: Nebius declined alongside other highly financed AI-infrastructure companies during a broader neocloud selloff, indicating that investors are becoming more cautious about debt-funded capacity expansion. Reports of a senior executive selling 500,000 shares may add further short-term pressure. CoreWeave and AI Infrastructure Selloff

Wall Street Analyst Weigh In

Several brokerages have weighed in on NBIS. William Blair started coverage on shares of Nebius Group in a research note on Wednesday, September 30th. They set an “outperform” rating on the stock. Rosenblatt Securities assumed coverage on Nebius Group in a research report on Thursday. They issued a “buy” rating and a $304.00 price objective for the company. Citigroup raised their target price on Nebius Group from $278.00 to $324.00 and gave the company a “buy” rating in a research note on Friday, August 14th. Zacks Research downgraded shares of Nebius Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 31st. Finally, Truist Financial upgraded shares of Nebius Group to a “strong-buy” rating in a research report on Thursday, September 10th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Nebius Group has a consensus rating of “Moderate Buy” and an average target price of $245.69.

Nebius Group Trading Up 0.6%

The company has a market capitalization of $55.94 billion, a P/E ratio of -7,366.54 and a beta of 4.18. The business has a 50 day moving average price of $225.14 and a 200 day moving average price of $203.82. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82.

Nebius Group (NASDAQ:NBIS) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 net margin of 4.55% and a negative return on equity of 6.03%. The business’s revenue for the quarter was up 454% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.38 earnings per share. Analysts anticipate that Nebius Group N.V. will post -3.48 EPS for the current year.

Insider Buying and Selling

In related news, CTO Danila Shtan sold 14,546 shares of the firm’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $234.16, for a total transaction of $3,406,091.36. Following the sale, the chief technology officer owned 260,217 shares of the company’s stock, valued at approximately $60,932,412.72. This trade represents a 5.29% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Charles E. Ryan sold 50,000 shares of Nebius Group stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $265.53, for a total value of $13,276,500.00. Following the transaction, the director owned 272,533 shares in the company, valued at approximately $72,365,687.49. This represents a 15.50% 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. Insiders have sold 166,616 shares of company stock worth $39,753,038 over the last ninety days.

Institutional Investors Weigh In On Nebius Group

A number of hedge funds have recently modified their holdings of the business. Dupree Financial Group LLC grew its position in shares of Nebius Group by 1.8% in the 3rd quarter. Dupree Financial Group LLC now owns 15,103 shares of the company’s stock valued at $3,562,000 after purchasing an additional 269 shares during the period. Castle Rock Wealth Management LLC acquired a new stake in Nebius Group during the 3rd quarter worth approximately $202,000. Farther Finance Advisors LLC raised its holdings in Nebius Group by 8.7% during the 3rd quarter. Farther Finance Advisors LLC now owns 8,655 shares of the company’s stock worth $2,041,000 after buying an additional 691 shares during the period. Meadowbrook Wealth Management LLC lifted its stake in Nebius Group by 14.0% in the third quarter. Meadowbrook Wealth Management LLC now owns 24,389 shares of the company’s stock valued at $5,753,000 after buying an additional 2,999 shares in the last quarter. Finally, Zevenbergen Capital Investments LLC lifted its stake in Nebius Group by 6.9% in the third quarter. Zevenbergen Capital Investments LLC now owns 24,050 shares of the company’s stock valued at $5,673,000 after buying an additional 1,550 shares in the last quarter. Institutional investors and hedge funds own 21.90% of the company’s stock.

Nebius Group Company Profile

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.