Nebius Group (NASDAQ:NBIS) Shares Gap Up – Here’s Why

Nebius Group N.V. (NASDAQ:NBIS)’s stock price gapped up before the market opened on Wednesday. The stock had previously closed at $134.00, but opened at $149.72. Nebius Group shares last traded at $154.7760, with a volume of 9,718,861 shares changing hands.

Top Nebius Group Stories

Here are a few of the latest stories about NBIS:

• Positive Sentiment: Premarket interest was buoyed by strength in CoreWeave and expectations that Nebius’s upcoming Q3 report could show sales growing more than sixfold. The move follows recent volatility in the AI-cloud sector. Article: NBIS stock jumps on CoreWeave boost and sales expectations
• Positive Sentiment: An investor comparison argues Nebius can earn substantially more per megawatt on short-term AI-compute deals than colocation providers on long-term contracts. The article notes Nebius also bears chip costs, though payback periods have been improving. Article: Neoclouds like Nebius compared with colocation companies
• Negative Sentiment: Bearish analysis highlights Nebius’s high capital requirements, possible dilution, hardware-replacement risks and execution challenges, arguing that its valuation may still be demanding despite the stock’s decline. Article: Nebius earnings preview and valuation concerns

Wall Street Analysts Forecast Growth

Several analysts have issued reports on NBIS shares. DA Davidson restated a “neutral” rating and issued a $175.00 price target on shares of Nebius Group in a research report on Thursday, August 13th. Piper Sandler cut their price objective on shares of Nebius Group from $237.00 to $185.00 and set a “neutral” rating for the company in a research report on Wednesday, October 21st. Rothschild & Co Redburn began coverage on shares of Nebius Group in a research report on Monday, September 21st. They set a “sell” rating and a $84.00 price objective for the company. Truist Financial upgraded shares of Nebius Group to a “strong-buy” rating in a research note on Thursday, September 10th. Finally, Northland Securities lifted their target price on Nebius Group from $248.00 to $410.00 and gave the stock an “outperform” rating in a research report on Monday, July 20th. Four research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Nebius Group presently has an average rating of “Moderate Buy” and an average price target of $246.00.

Nebius Group Stock Up 17.1%

The business has a 50 day moving average of $198.90 and a 200 day moving average of $178.10. The company has a debt-to-equity ratio of 0.82, a current ratio of 4.03 and a quick ratio of 4.03. The firm has a market capitalization of $39.70 billion, a price-to-earnings ratio of -5,234.36 and a beta of 4.63.

Nebius Group (NASDAQ:NBIS) last issued its earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, topping the consensus estimate of ($0.67) by $0.55. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The firm had revenue of $582.30 million during the quarter, compared to analysts’ expectations of $567.91 million. During the same period last year, the business earned $2.38 earnings per share. Nebius Group’s quarterly revenue was up 454% compared to the same quarter last year. On average, equities analysts anticipate that Nebius Group N.V. will post -3.19 EPS for the current year.

Insider Buying and Selling

In other news, Director Charles E. Ryan sold 50,000 shares of Nebius Group stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $265.53, for a total transaction of $13,276,500.00. Following the sale, the director directly owned 272,533 shares in the company, valued at approximately $72,365,687.49. The trade was a 15.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Danila Shtan sold 14,546 shares of Nebius Group stock in a transaction dated Thursday, October 1st. The shares were 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 in the company, valued at approximately $60,932,412.72. This trade represents a 5.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have acquired 1,718 shares of company stock worth $280,207 and have sold 158,823 shares worth $38,168,832.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NBIS. Saudi Central Bank boosted its stake in shares of Nebius Group by 110.0% in the 2nd quarter. Saudi Central Bank now owns 167,819 shares of the company’s stock valued at $46,347,000 after purchasing an additional 87,896 shares in the last quarter. Lombard Odier Asset Management Switzerland SA acquired a new stake in shares of Nebius Group during the 1st quarter worth about $1,087,000. Situational Awareness LP acquired a new stake in shares of Nebius Group during the 2nd quarter worth about $1,232,895,000. Amundi lifted its holdings in Nebius Group by 10.6% during the 1st quarter. Amundi now owns 1,343,954 shares of the company’s stock valued at $139,449,000 after purchasing an additional 128,380 shares during the last quarter. Finally, Nissay Asset Management Corp Japan bought a new position in Nebius Group during the 2nd quarter valued at about $17,118,000. Institutional investors own 21.90% of the company’s stock.

About Nebius Group

Nebius Group is a technology company focused on building infrastructure for artificial intelligence. Its core business, Nebius, offers cloud computing services and access to accelerated computing resources designed to help developers and organizations train and run AI models. The company also has businesses in areas including data services for AI, autonomous mobility and online education. Based in Amsterdam, Nebius serves customers internationally and is developing data center and computing capacity to support its AI cloud services.